Ballard Mining (ASX:BM1) has secured firm commitments for a $45 million placement to expand drilling and advance development work at its Mt Ida Gold Project in Western Australia.
The company will issue approximately 68.2 million shares at $0.66 each, a 7.7% discount to its last closing price. Settlement is expected on 16 October, with shares issued around 19 October.
Ballard also plans a $5 million share purchase plan (SPP) at the same price, with discretion to accept another $5 million in oversubscriptions.
Managing Director Paul Brennan says the raising strengthens the company’s shareholder base ahead of potential development.
“We now have a strong register that is capable of supporting the project build,” Brennan says.
Assuming the SPP raises $5 million, Ballard’s September cash balance and gross financing proceeds would total approximately $94.1 million.
Its proposed spending includes $40 million for resource growth and infill drilling, $28 million for a 250-person accommodation village, and $10 million for front-end engineering design.
Another $3 million is allocated to completing a Feasibility Study, including a maiden ore reserve. A final investment decision on the approved processing facility remains targeted for mid-2027.
Mt Ida hosts a mineral resource of approximately 20.4 million tonnes @ 2.8 grams per tonne gold, containing 1.84 million ounces across indicated and inferred categories.
Eligible Australian and New Zealand shareholders can apply for up to $30,000 under the SPP, scheduled to run from 19 October to 9 November. Neither offering is underwritten.
Ballard Mining is an Australian gold explorer and developer focused on advancing Mt Ida towards production.
Write to France Pinzon at Mining.com.au
Main image: Ballard Mining
