A Western Australian gold mining company Blackham Resources has successfully refinanced its non-amortising term loan with Orion via a new secured $14.3 million financing arrangement with Blackham’s key mining contractor, MACA Limited.

TAM Jan17 01Following the standstill agreement announced on 2 January 2018, which deferred the 31 December 2017 maturity repayment date of the Term Loan to 15 January 2018, Blackham has negotiated a $14.3 million secured loan facility with MACA, allowing Blackham to satisfy the maturity repayment date of the Term Loan, whilst not having any principal repayment obligations under the MACA Loan until March 2019. The interest rate under the MACA Loan is initially 10% per annum.

Blackham intends to undertake an Entitlements Issue to raise approximately $ 35.9 million (before costs), with underwriting of the Entitlements Issue set to be arranged. The Entitlements Issue will be undertaken on the basis of five new shares for every two shares held, at an issue price of $0.04 per new share, together with one free attaching listed option (exercisable at $0.08 on or before 31 January 20 19) for every two new shares issued.

Blackham’s Chairman, Milan Jerkovic referred to the loan as a significant milestone, which allows Blackham to move forward with the final stage of the Company’s recapitalisation stage.

“This will ensure that Blackham is well funded with a strong balance sheet to enable it to focus initially on a simple free milling mine plan at its Matilda-Wiluna gold mine having recently accessed high grade ore zones, delivered record gold production and achieved a step change in project economics.

“The Company plans to repay the remainder of its Orion facilities and normalise working capital using internally generated cash flows by the end of 2018, targeting a net-cash position by the end of the calendar year, whilst continuing exploration aimed at lengthening and improving the free milling mine plan.”

Additionally, MACA, Orion and PYBAR” have each provided sub-underwriting commitments in respect of the proposed Entitlements Issue of up to a total of $13m. The majority of this $13 million in commitments will come from MACA, which is providing $8 million, while Orion and PYBAR are providing $2.5 million each. Mr Jerkovic has also committed $500,000.

MACA’s Managing Director, Chris Tuckwell believes that following successful completion of the Entitlements Issue, Blackham will be “well positioned to execute its forward plans”.

Source: http://blackhamresources.com.au

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