Document 6590001

For personal use only
ASX Announcement
30 October 2014
BOARD OF DIRECTORS
Paul Murphy
(Non-Executive Chairman)
Bryan Dixon
(Managing Director)
Alan Thom
(Executive Director)
Greg Miles
(Non-Executive Director)
ASX CODE
BLK
CORPORATE
INFORMATION
118.9M Ordinary Shares
14.1M Unlisted Options
ABN: 18 119 887 606
PRINCIPAL AND
REGISTERED OFFICE
Blackham Resources Ltd
L2, 38 Richardson Street
West Perth WA 6005
$3.8m Funding Package
Blackham Resources Limited (“Blackham” or “the Company”) is
pleased to announce that it has received equity commitments for
$3.15 million at 11.5 cents per fully paid ordinary share in the capital
of the Company (“Share”).
The Company has subscriptions for $450,000 through a placement
of 3.91 million shares at 11.5 cents per Shares (“Placement
Shares”) to sophisticated and professional investors (“Placement”).
Blackham also wishes to advise that it has strengthened its
relationship with Lanstead Capital L.P. ("Lanstead"), a UK based
institutional investor, by signing a subscription agreement under
which Lanstead will be providing funding of $2,200,000 before
expenses by way of a subscription for 19,130,455 Shares
("Subscription Shares") at a price of $0.115 per share
("Subscription"). Further details of the Subscription are set out
below.
Both the Placement Shares and the Subscription Shares will be
issued under the Company’s existing capacity pursuant to the ASX
Listing Rules, as approved by shareholders at the Company’s
general meeting on 2 September 2014.
www.blackhamresources.com.au
In addition, the Company intends to offer its existing shareholders
the chance to top up their shareholdings by subscribing for shares
pursuant to a proposed offer of up to 10,000,000 Shares pursuant
to a prospectus to raise up to $1,150,000 before costs (“Offer”).
BBY Limited has committed to partially underwrite the Offer to the
amount of $500,000.
E: [email protected]
Use of Proceeds
P: +61 8 93226418
F: +61 8 93226398
The net proceeds raised from the Placement, the Subscription and
Offer will be used to fund exploration and development studies for
the Company’s Matilda Gold Project and for general working capital.
POSTAL ADDRESS
PO Box 1412
West Perth WA 6872
Subscription
Lanstead, a substantial shareholder in the Company, has subscribed
for a further 19,130,455 Ordinary Shares (the "Subscription Shares"),
for an aggregate consideration of $2,200,000. In addition, the
Company has entered into Equity Swap Agreements with Lanstead
which allow the Company to retain much of the economic interest in
the Lanstead Subscription Shares. The Equity Swap Agreements
enable the Company to secure much of the potential upside arising
from anticipated near term news flow.
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For personal use only
The Equity Swap Agreements provide that the Company's economic interest will be determined
and payable in 18 monthly settlement tranches as measured against a benchmark price of
$0.153333 per Share (the "Benchmark Price"). If the measured Share price exceeds the
Benchmark Price, for that month, the Company will receive more than 100per cent of the
monthly settlement due on a pro rata basis. There is no upper limit placed on the additional
proceeds receivable by the Company as part of the monthly settlements. Should the measured
Share price be below the Benchmark Price, the Company will receive less than 100 per cent of
the expected monthly settlement on a pro rata basis. Of the aggregate proceeds of $2,200,000
from the issue of the Subscription Shares, the Company will use $330,000 (15 per cent) for
working capital and $1,870,000 (85 per cent) for investment in the Equity Swap Agreements as
described above. In no event would a decline in the Share price result in any increase in the
number of shares received by Lanstead or any other advantage accruing to Lanstead. The
Company has agreed to make a value payment to Lanstead of 956,522 Ordinary Shares in
consideration for the Equity Swap Agreements.
Following completion of the Subscription and the Placement (but excluding any shares issued
under the Offer) Lanstead will have an interest in 28,322,251 Shares representing
approximately 19.6% of Blackham's enlarged issued Share capital.
Shareholder Offer
The Company proposes to raise $1,150,000 by way of the Offer, with priority being given to
existing shareholders. The Offer price equates to approximately a:
•
•
•
12% discount to the last price ($0.13/share);
12% discount to 10 day VWAP ($0.13/share); and
26% discount to 30 day VWAP ($0.154/share)
of Shares sold on the Australian Securities Exchange (“ASX”) during the period ending 15 October
2014.
The Offer will provide shareholders with the opportunity to apply for Shares at 11.5 cents per
Share. The Offer opens on 30 October 2014 and will close on or before 26 November 2014. Full
details of the Offer will be contained in the prospectus and accompanying application forms, which
will be sent to all shareholders in the coming days. BBY Limited has committed to partially
underwrite the Offer to the amount of $500,000.
For further information on Blackham please contact:
Bryan Dixon
Managing Director
Blackham Resources Limited
Office: +618 9322 6418
Tony Dawe
Professional Public Relations
Office: +618 9388 0944
About Blackham Resources Ltd
Blackham Resources is focused on the exploration and development of its Matilda Gold Project
in Western Australia where it recently secured the neighbouring plant, infrastructure and tenure
increasing the resources to 40Mt @ 3.3 g/t for 4.3Moz all within a 20km radius of the plant. The
gold plant has a production capability of 100,000ozpa with 350 person camp, gas power station,
permitted borefields, sealed airstrip and roads, approvals and licenses. Recently drilling at
Galaxy and Matilda demonstrated the high grade intercepts contributing to Blackham goal of
extending the initial mine life beyond 5 years.
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Table 1. Matilda Gold Project Resource Summary (JORC 2012)
Measured
Mining Centre
g/t
Au
2.4
For personal use only
Mt
Matilda Mine
Williamson
Mine
Regent
0.1
Indicated
Koz
Au
9
Inferred
4.7
g/t
Au
2.0
Koz
Au
300
2.7
1.7
0.7
2.5
Mt
8.2
g/t
Au
1.7
Koz
Au
450
150
3.6
1.7
61
3.1
0.6
16
Galaxy
TOTAL
0.1
2.4
9
8.1
2.0
Total
510
Mt
13
g/t
Au
1.8
Koz
Au
760
200
6.3
1.7
350
2.1
210
3.9
2.2
270
2.9
52
0.6
2.9
52
1.8
910
24
1.9
1,400
Mt
Mineral Resource estimates are not precise calculations, being dependent on the interpretation of limited information on the location
shape and continuity of the occurrence and on the available sampling results. The figures in Table 1 above are rounded to two
significant figures to reflect the relative uncertainty of the estimate.
Table 2. WGP Resource Summary (JORC 2004)
Indicated
Lode
Inferred
Total
Mt
g/t Au
Koz Au
Mt
g/t Au
Koz Au
Mt
g/t Au
Koz Au
Henry 5 – Woodley
- Bulletin
2.1
5.9
404
0.8
4.6
112
2.9
5.6
516
Burgundy - Calais
1.3
6.0
250
0.3
5.7
58
1.6
6.0
309
East Lode
1.2
5.4
213
2.6
5.5
453
3.8
5.4
667
West Lode Calvert
1.2
5.3
198
2.3
5.3
383
3.4
5.3
581
Happy Jack Creek Shear
1.5
5.9
289
1.3
4.8
205
2.9
5.4
494
Other Deposits
0.8
4.0
109
1.3
4.1
172
2.1
4.1
281
8.2
5.6
1,465
8.6
5.0
1,384
16.7
5.3
2,848
Wiluna Total
Competent Persons Statement
The information contained in the report that relates to Exploration Targets, Exploration Results, and Mineral Resources at the
Matilda Gold Project is based on information compiled or reviewed by Mr Cain Fogarty, who is a full-time employee of the Company.
Mr Fogarty is a Member of the Australian Institute of Geoscientists and has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the activity which is being undertaken to qualify as a Competent
Persons as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves’. Mr Fogarty has given consent to the inclusion in the report of the matters based on this information in the form and
context in which it appears.
The information contained in the report that relates to Mineral Resources at the Wiluna Gold Project is based on information
compiled or reviewed by Mr Greg Miles, who is a full-time employee of the Company. Mr Miles is a Member of the Australian
Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralisation and type of deposit under
consideration and to the activity which is being undertaken to qualify as a Competent Persons as defined in the 2004 Edition of the
‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Miles has given consent to the
inclusion in the report of the matters based on this information in the form and context in which it appears.
With regard to the Matilda Gold Project and Wiluna Gold Project Mineral Resources, the Company is not aware of any new
information or data that materially affects the information included in this report and that all material assumptions and parameters
underpinning Mineral Resource Estimates as reported in the market announcement dated 20th of January 2014 continue to apply
and have not materially changed.
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