The deal has been signed with the Orion Fund JV Ltd, a subsidiary of global resource powerhouse Orion Mine Finance Funds, which will see them come on as a supportive cornerstone investor in Blackham.
Managing Director of Blackham Resources Mr Bryan Dixon said the deal was transformational for the company, with the Matilda gold project now de-risked and a clear pathway to production now defined and fully funded.
"We are extremely pleased to have agreed to this financing package and welcome Orion to the company's register," Mr Dixon said.
"The Orion funding gives Blackham a fully funded solution to bring the Matilda Gold Project into production and provides further validation of the robust nature of this project."
The first tranche of funds will come from a private placement to Orion Fund, in which Blackham will receive $2.5 million. Blackham will then receive a $6 million non-amortising term loan and a further $30 million upon the completion of the definitive feasibility study at the Matilda project.
Mr Peter Rozenauers will join the Blackham board as Orion FundA-s nominee director. Mr Rozenauers was previously with Red Kite Group as Senior Investment Manager and Head of Asian Commodities Distribution for Barclays Capital.
Orion Fund and Blackham have also entered in to an offtake agreement, which will see Blackham sell 50% of gold produced at Matilda until it has delivered 250,000oz of gold to Orion, for a price to be set in context of the market at the time of delivery.
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About Wiluna Mining Corporation Ltd
Wiluna Mining Corporation (ASX:WMC) (OTCMKTS:WMXCF) is a Perth based, ASX listed gold mining company that controls over 1,600 square kilometres of the Yilgarn Craton in the Northern Goldfields of WA. The Yilgarn Craton has a historic and current gold endowment of over 380 million ounces, making it one of most prolific gold regions in the world. The Company owns 100% of the Wiluna Gold Operation which has a defined resource of 8.04M oz at 1.67 g/t au. In May 2019, a new highly skilled management team took control of the Company with a clear plan to leverage the Wiluna Gold Operation's multi-million-ounce potential.
Wiluna Mining Corporation Ltd
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