Bellevue Gold (ASX:BGL) has closed an oversubscribed share purchase plan with funds to be used to accelerate underground drilling at its namesake gold project in Western Australia.
The company says applications under the SPP totalled about $59.25 million, well ahead of the original $10 million target. Bellevue reports it received applications from 3,329 eligible shareholders out of 11,244 eligible shareholders, representing a participation rate of about 26.55%, and an average application amount of approximately $17,768.
In light of this demand, Bellevue has exercised its discretion under the terms of the SPP offer booklet released in December 2022 to increase the size of the SPP to $25 million.
Commenting on the SPP, Bellevue Gold Managing Director Steve Parsons says the demand for the SPP reflected the strong outlook for the company and its Bellevue project.
“The demand for the SPP was exceptionally strong. This reflects the rapid progress we are making at the Bellevue project and the robust position in which the company now finds itself”
“The demand for the SPP was exceptionally strong. This reflects the rapid progress we are making at the Bellevue project and the robust position in which the company now finds itself.
Bellevue is well on track to be Australia’s next major gold producer with low costs, strong free cash flow and an enviable status as the country’s first carbon neutral gold miner. On behalf of the board, I would like to thank all shareholders for their support.”
Due to the ‘strong’ demand for the SPP, Bellevue reports it has had to scale back valid applications. The scale back methodology implemented was designed to provide the most equitable outcome for all shareholders to limit dilution relative to their shareholding at the record date of 5 December 2022.
The company says this is consistent with the allocation policy adopted for the institutional placement, and allocations were made on a pro-rata basis in regards to shareholding size, and a minimum allocation of 1,000 shares per application.
Furthermore, excess application money raised in the SPP will be refunded to shareholders, and a total of more than 23.809 million new fully paid ordinary shares will be issued on 20 January.
The company reports the funds raised from the SPP will be used to accelerate underground development, conduct exploration drilling, and provide additional working capital at the Bellevue project.
Bellevue Gold is an Australian gold producer operating a portfolio of projects in the Goldfields mining district of Western Australia. These projects include the Bellevue Gold, South Yandal, and Kathleen Valley projects.
The Bellevue Gold Project is a ‘high-grade’ underground gold mine that sits within the Yakabindi domain of the Agnew-Wiluna Greenstone Belt, which in turn is a part of the Eastern Goldfields Super Terrane.
The project has a global resource 3.1 million ounces @ 9.9g/t Au. This includes a probable ore reserve of 6.8 million tonnes @ 6.1g/t Au for 1.34 million ounces. The company also notes the project is designed around a 1 million tonnes per annum processing plant which uses a conventional gravity and leaching circuit.
Images: BELLEVUE GOLD LIMITED
