Bellevue Gold Ltd (ASX:BGL) is a step closer to becoming Australia’s next high-grade gold producer after receiving firm commitments for a $60 million fully underwritten share placement to institutional investors.
The company said the placement attracted very strong demand from existing and new domestic and offshore institutions.
New shares will be issued at $1.05 per share representing a discount of 13.2% to the last closing price of $1.21 on December 5, 2022, and an 8.4% discount to the five-day volume weighted average price of $1.146.
De-risking
Proceeds from the placement will be used to accelerate underground development and exploration at the Bellevue Gold Project in Western Australia to reduce production risk and increase financial flexibility during construction and ramp-up.
Read more about the accelerated development strategy here.
The Bellevue Gold Project is 40 kilometres to the northwest of Leinster in the Goldfields region of Western Australia and sits in a major gold and nickel-producing district with mines such as Northern Star's Jundee and Bronzewing in close proximity.
It has a JORC-compliant mineral resource of 9.8 million tonnes at 9.9 g/t gold for 3.1 million ounces, including a probable ore reserve of 6.8 million tonnes at 6.1 g/t gold for 1.34 million ounces, one of the highest grade gold discoveries in the world and the fastest-growing gold project in Australia.