Bellevue Gold Ltd's (ASX:BGL) $100 million fully underwritten share placement has been strongly supported on the back of its impressive gold story with firm commitments from institutional investors for the issue of 100 million new shares at $1.00 per share.
There was strong demand from domestic and offshore institutions with the book multiple times covered over the placement amount.
Bellevue managing director Steve Parsons said: “The strong demand from institutions around the world reflects the quality of the Bellevue Gold Project, its Tier-1 location and its high-grade mineralisation and the immense potential for further growth.
“The placement demonstrates clear support for our strategic plan to unlock the full value of an exceptional asset with extremely high grades and scope for further growth.”
The placement shares are expected to settle on Tuesday, July 14, 2020, and be issued and commence trading on the ASX on a normal basis on Wednesday, July 15, 2020.
Share purchase plan
Bellevue will also undertake a share purchase plan (SPP) of up to A$20 million with shares offered at the placement price of A$1.00.
The record date for the SPP is 5:00pm (Perth time) on Wednesday, July 8, 2020, and is open to all eligible shareholders in Australia and New Zealand.
The SPP offer period is anticipated to be open from Monday, July 20, to Friday, August 7, 2020, subject to Bellevue’s discretion to amend these dates by making an ASX announcement.
The SPP offer booklet is expected to be lodged on Monday, July 20, 2020.
Bellevue reserves the right (in its absolute discretion) to scale back applications under the SPP if demand exceeds A$20 million.
Funding project development
The equity raising will see the company fully funded for an aggressive exploration campaign at its Bellevue Gold Project in WA to upgrade and increase resources while advancing underground development on the pathway to resource growth and development.
Proceeds from the placement and SPP will be used to fund:
- Growth of the existing 2.3 million ounces resource at Bellevue Gold Project;
- Further expand the indicated resource of 860,000 ounces at 11.6 g/t and grow the high-grade core of 480,000 ounces at 15.5g/t by upgrading more of the inferred resource;
- Ongoing step-out exploration for further discoveries as all lodes remain open in every direction;
- Further regional exploration;
- Reestablish access for mechanised re-entry to underground and establish drill platforms;
- Fund underground mine development, including production decline and infrastructure;
- Establish non-processing infrastructure; and
- General working capital and offer costs.