Blackham slumps on market return

SHARES in Blackham Resources lost more than 50% this morning after the company was reinstated to trading after a five-week suspension.

Blackham slumps on market return Blackham slumps on market return Blackham slumps on market return Blackham slumps on market return Blackham slumps on market return

The gold producer formally launched an underwritten five-for-two renounceable rights issue to raise around A$36 million.

The issue price is 4c per share, a hefty discount to Blackham’s last closing price of 10.5c on December 14.

While shares fell by 50.5% in early trade, they were still trading above the raising price at 5.2c per share.

Every two new shares in the issue will come with a free-attaching 8c option, expiring in January 2019.

Lead manager Hartleys completed a sub-underwriter bookbuild, which was heavily oversubscribed.

The level of demand has resulted in sub-underwriters MACA, Orion Mine Finance and Pybar agreeing to reduce their commit...