Blackham Resources Ltd (ASX:BLK) is encouraged by the strong support shown to a non-renounceable pro-rata entitlement offer which has raised approximately $26.15 million before costs.
Despite difficult market conditions, the offer on the basis of four new shares for every nine shares held has been strongly supported by large institutions, cornerstone investors and the company's executive chairman Milan Jerkovic.
The company received applications for more than 990 million new shares totalling more than $9.90 million with the shortfall of 1,625 trillion shares to be taken-up in accordance with the terms and conditions of an underwriting agreement.
This agreement is between Blackham and its joint underwriters Delphi Unternehmensberatung AG and Sparta AG.
Blackham's top three global institutional shareholders, its executive chairman plus major shareholder and underwriter, Delphi AG, all exercised their entitlement.
"Fortunate to have Delphi"
Jerkovic said: “Blackham is fortunate to have Delphi and a number of significant global institutions that stepped up during the past months market turmoil.
“We take that as a real show of support not only for the Wiluna project but for the current management team and our staged strategy to becoming one of the largest single asset gold producers in Australia.
“The resultant transformation of the Blackham balance sheet will allow the company to move rapidly ahead on its previously announced Sulphide Expansion Project.”
The issue of the new shares is expected to occur on April 1, 2020, in accordance with the timetable.
"Capability to deliver full Wiluna potential"
Major Delphi shareholder and chairman of investment company Deutsche Balaton Wilhelm Zours said: “Blackham represents our largest mining investment to date and fits our long-term strategy of investing in deep value.
“Wiluna has historically been a very rich gold mine and we believe that this management team has the capability and now the balance sheet to deliver its full potential.”