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Bellevue Gold in $70 million raise as first production nears

Bellevue Gold

Bellevue Gold has received firm commitments for a $60 million share placement, as the company also looks to raise $10 million through a share purchase plan.

The placement price of $1.05 per share represents a 13.2 per cent discount to the company’s closing price of $1.21 on Monday December 5.

Bellevue will use the placement proceeds to accelerate underground development and exploration at its Bellevue gold project in Western Australia, which is targeting first gold in the second half of 2023.

The company is looking to accelerate 4000–5000m of underground development to open additional production fronts and de-risk post-production run rate and reduce developments costs during ramp up.

Additional grade control, step out and resource definition drilling is also planned to improve geological confidence and grow the project resource and reserve inventory.

The funds will also provide additional balance sheet flexibility en route to commercial production. In addition, Bellevue has $47 million of cash (as of November 30) and a $200 million undrawn Macquarie project finance facility.

“Every aspect of the project is going to plan or better,” Bellevue managing director Steve Parsons said. “Development rates, grade control drilling results and exploration are all exceeding our expectations.

“The success is providing us with an opportunity to unlock the value of the project sooner and to a greater extent than originally planned.

“This additional funding will enable us to capitalise on this opportunity by bringing forward some of the underground development, de-risking the production outlook in the process.

“It will also ensure we have a robust level of working capital as we ramp up production.”

Bellevue’s ramp up is expected to take two months, with first production set for the second half of 2023. The remaining pre-commercial production project costs is approximately $219 million, which incorporates additional accelerated underground development capital.

Bellevue’s $10 million share purchase plan is also priced at $1.05 and will be open for all eligible shareholders from Wednesday December 14 until Friday January 13, subject to any changes from the company.

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