Bellevue Gold to raise $26.5m

Bellevue Gold has received commitments to raise $26.5 million through a share placement, as the company seeks to upgrade resources at its flagship project in Western Australia.

The West Perth-based company said the proceeds would fund infill and resource extension drilling programs at its Bellevue Gold project, located 400 kilometres north-west of Kalgoorlie.

The inferred resource stands at 6.1 million tonnes at 11.3 grams per tonne for 2.2 million ounces of gold.

Bellevue is seeking to upgrade the project’s inferred resource to the indicated category.

The company will issue around 88.3 million shares, priced at 30 cents per share, with Canaccord Genuity acting as lead manager and bookrunner to the placement.

Argonaut will act as co-manager.

Bellevue Gold managing director Steve Parsons said the company would now be funded to mid-2021 calendar year.

“To complete a raising such as this in any environment is an excellent achievement but to do it in the current market circumstances is exceptional,” he said.

“The proceeds ensure we have ample cash to continue unlocking the value of this project through infill and resource growth drilling while also undertaking the economic and technical studies which should pave the way for development and production.”

Bellevue Gold entered into a trading halt ahead of the raising on Monday.