Blackham Resources Ltd (ASX:BLK) (FRA:NZ3) (OTCMKTS:BKHRF) substantial shareholder Delphi Unternehmensberatung AG continues to show confidence in the company’s gold strategy, lifting its stake to 19.83%.
The German-based, prolific Australian junior resources sector investor now holds more than 935 million shares.
On November 12, Delphi made an on-market purchase of almost 167,000 shares at 1.2 cents per share.
Ten days later Heidelberg-headquartered Delphi made an off-market purchase of 340 million shares with a value of $4.08 million.
Delphi had previously acquired more than 89 million shares in on-market transactions at prices ranging from 1.00 cent to 1.29 cents between October 17 to November 11, increasing its holding in Blackham to 12.62%.
$3 million raised
Last month Blackham received applications in excess of $3 million from eligible shareholders pursuant to a non-underwritten share purchase plan (SPP) offer announced in September.
The new funds have been allocated to key mine development work programs that will underpin Blackham’s FY20 production at its flagship Matilda-Wiluna Gold Operations in Western Australia.
Ongoing work programs include pre-production activities at the Williamson open pit, new tailings storage facility and rod mill refurbishment.
The company has set a guidance figure of between 70,000 and 80,000 ounces of gold at an all-in sustaining cost (AISC) of A$1,550-$1,750 per ounce in FY2020.
This represents an annual production growth of 7-22% on FY19 which produced 65,406 ounces of gold at an AISC of A$1,760 per ounce.
Production in FY20 will be focused on free milling ore bodies prior to Blackham transitioning to stage I of its Sulphide Expansion Project, which is planned to begin production during FY21.