Bellevue Gold Ltd (ASX:BGL) is fully funded to gold production at its namesake WA project after completing a strongly supported institutional placement that raised $106 million.
The multi-million-dollar cash injection will subsidise the ramp-up to operations at Bellevue Gold Project, an asset poised to catapult the explorer to top-20 producer status down under.
Institutional investors from Australia and overseas bought in at $0.85 per share, with bids covering the placement multiple times over.
Following the institutional raise, Bellevue will undertake a share purchase plan (SPP) to raise up to $25 million.
"Full steam ahead"
Bellevue Gold managing director Steve Parsons said: “The strong demand from institutions around the world reflects the quality of the Bellevue Gold Project, the exceptional free cash flow generation forecast and the immense potential for further growth.
“With the project fully funded to production, we will proceed full steam ahead with development while maintaining a strong emphasis on further growth by increasing and upgrading the mineral resources and ore reserves.
“The stage two feasibility study is based on a resource of 1.5 million ounces, which represents just half of the total 3-million-ounce resource base at Bellevue.
We have already announced a host of high-grade drilling results outside that resource, we have another 14,000 samples awaiting assay and there are now two rigs drilling from underground.
“This multi-pronged approach to expanding the resource is aimed at growing the mine life, which will increase the already-strong financial results forecast in this study.”
Share purchase plan to follow
Together with a $200 million debt facility, the $106 million placement means Bellevue is fully funded to production at its cornerstone gold asset.
However, the ASX-lister intends to take the raise a step further with a share purchase plan to raise up to $25 million.
Ultimately, Bellevue reserves the right to scale back applications under the SPP if demand exceeds $25 million. Alternatively, it can also opt to accept oversubscriptions.
SPP shares will be issued at the same price as the placement and is not underwritten.
Shareholders across Australia and New Zealand can buy in under the plan between September 13 and October 1, subject to Bellevue’s discretion.
Bellevue Gold Project
Yesterday, Bellevue unveiled its stage two feasibility study for its namesake Western Australian gold project,
Importantly, the study solidifies Bellevue’s position within an exclusive club of global gold miners that boast first-class technical and financial characteristics.
Gold projects that fall in this category must be in a tier-1 location, host a reserve grade of more than 5 g/t and forecast production of at least 180,000 ounces per annum.
At present, only seven other assets in the world meet these criteria.
Following the key report, the Bellevue asset is poised to rank among the world’s leading gold projects based on its grade, production, location and free cash flow generation.
The cornerstone asset is on track to become Australia’s next new, significant high-grade gold mine, with first production targeted in the June quarter of 2023.