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Blackham Resources seeks acceptances for $36 million entitlements offer

The offer is the final stage in the company’s recapitalisation strategy.
Gold pour
High-grade ore is being accessed at the Matilda-Wiluna project

Blackham Resources Ltd (ASX:BLK) has sent eligible shareholders acceptance documents for a fully underwritten entitlements offer in which it aims to raise up to $36 million.

An entitlement offer prospectus together with an entitlement and acceptance form have been sent by the gold producer.

The renounceable pro-rata issue is for 897 million new shares on the basis of five new shares for every two existing shares held at 17:00 (WST) on 29 January 2018.

READ: Blackham Resources raising $36 million to support gold growth strategy

An issue price of $0.04 per new share applies to the offer, together with one free attaching listed $0.08 option expiring on 31 January 2019 for every two new shares issued.

Funds raised will underpin growth of its Matilda-Wiluna Gold Operation in Western Australia, at which high-grade ore is being accessed.

Blackham has received strong demand from its domestic and international institutional and professional investor network to participate in sub-underwriting the issue.

Closing date for acceptances is Tuesday 6 February 2018 and trading of the new shares is expected to begin on Tuesday 20 February.

READ: Blackham Resources implements initial stages of recapitalisation strategy

The renounceable rights issue is the final step in Blackham’s recapitalisation strategy.

It will maintain a sound cash position once the issue is complete and all relevant payments have been made, with cash expected to remain above $15 million during 2018.

During 2018 the company intends to achieve strong cash flow generation from operations and end the year in a net cash position.

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