Ballard Mining Ltd. has raised AU$45 million through a single-tranche share placement to expand and de-risk its Mt Ida gold project in Western Australia.
The miner will issue approximately 68.2 million new fully paid ordinary shares at an issue price of 66 cents per share. The price represents a 7.7 per cent discount to Ballard’s last closing price on 7 October.
Alongside the institutional placement, Ballard will offer eligible existing shareholders in Australia and New Zealand the opportunity to participate in a share purchase plan (SPP) to raise up to an additional AU$5 million at the same issue price. The company retains discretion to accept oversubscriptions up to a further AU$5 million.
Upon completion of the raising, Ballard’s pro-forma cash reserves will sit at approximately AU$94.1 million as of late September.
The additional capital will fund an exploration and development campaign at Mt Ida, which currently holds a mineral resource of 1.84 million ounces grading 2.8 grams per tonne gold.
Specifically, proceeds will be directed towards resource extension and infill drilling to expand and upgrade gold inventory. The company will allocate AU$28 million for the design and construction of a new 250-person permanent accommodation village.
Front-end engineering design (FEED) and early development works will account for AU$13.5 million, including borefield installations and a minor road diversion.
Ballard also plans to use the additional capital for the completion of a feasibility study and maiden ore reserve statement.
Ballard Mining Managing Director Paul Brennan welcomed the strong support from domestic and international resource funds despite broader market volatility.
“We now have a strong register that is capable of supporting the project build,” he said.
“The board has confidence in both the development and further resource growth at the Mt Ida project.”
Settlement of the placement shares is expected on 16 October, with the SPP scheduled to open on 19 October.
