Demand boosts Bellevue's bank balance

STRONG interest has led Bellevue Gold to upsize its share purchase plan by A$15 million.
Demand boosts Bellevue's bank balance Demand boosts Bellevue's bank balance Demand boosts Bellevue's bank balance Demand boosts Bellevue's bank balance Demand boosts Bellevue's bank balance

The company raised $100 million in a placement last month at $1 per share, and launched a share purchase plan to raise up to an additional $20 million.

The SPP closed on Friday afternoon.

Due to heavy demand, the company decided to increase the size of the SPP by $15 million to $35 million.

Bellevue managing director Steve Parsons said the company was extremely pleased with the response.

"The logic behind the share purchase plan was to allow our retail shareholders the ability to participate in the raising on the same terms as the institutional shareholders," he said.

"Given market circumstances around COVID-19, it prevented us from offering a SPP in our last raise so it's been great to reward them this time round."

The proceeds of the raising will be used for further exploration and development at the Bellevue gold project near Leinster, with a $35 million exploration budget set for the next 18 months.

The company will focus on overall and indicated resource growth, and step-out drilling and regional exploration.

Bellevue now has a total indicated and inferred resource of 7.03 million tonnes at 10 grams per tonne gold for 2.26Moz of gold, using a 3.5gpt cut-off.

About $20 million will be spent to re-establish access for mechanised re-entry to the underground mine and to establish drill platforms, with $40 million to be used for underground mine development.

Up to $20 million will be spent on non-process infrastructure, including camp, road, power and communications upgrades.

Bellevue is aiming to complete feasibility studies in the first quarter of next year, and start construction in June 2021.

Shares in Bellevue hit an all-time high of $1.225 in late June. The stock was down 8.6% this morning to $1.01, in line with the broader market sell-off of gold stocks.