Bellevue Gold experienced a sharp decline in its share price on the ASX following the completion of an equity raising initiative at a 15.3% discount to the previous day’s closing price. As of midday AEST, Bellevue emerged as the poorest performer within the ASX 200, with its shares plummeting by 22.4% to $1.42. Conversely, the broader materials sector displayed robust performance, registering a gain of 1.54%.
The gold miner launched a $150 million institutional placement aimed at partially repaying its project loan facility with Macquarie Bank. This move is designed to bolster operational cash flow and facilitate the execution of its ambitious five-year growth plan. The placement was priced at $1.55 per share, representing a 15.3% discount relative to Wednesday’s closing price of $1.83. Additionally, Bellevue intends to initiate a share purchase plan, targeting an additional $25 million at the same discounted share price.
According to Bellevue, the institutional placement garnered significant support from both existing and new domestic as well as offshore investors, with demand for new shares exceeding the placement size. Managing Director and CEO Darren Stralow expressed satisfaction with the strong backing received, stating, “We are extremely pleased with the very strong support for the placement from both our shareholders as well as new investors.”
“With the enhanced financial flexibility at our disposal,” Stralow added, “our team remains focused on unlocking the full potential and value of our mining operations by scaling up production and reducing costs, thereby maximizing returns and free cash flows for our shareholders.”
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