Canaccord Genuity was lead manager and BW Equities was broker to the placement, which saw around 45 million shares issued at 45c per share, an 18.9% discount to the company’s last close before entering a trading halt last week.

The funds will be used for the refurbishment of the Wiluna plant at the Matilda gold project in Western Australia, to allow first production in the September quarter.

The recently released definitive feasibility study for Matilda estimated refurbishment costs of $22.9 million for the Wiluna plant.

The company will also fast-track reserve and exploration drilling at Matilda.

Blackham managing director Bryan Dixon said the company was pleased with the level of support.

“The funding allows the plant refurbishment to be fast-tracked at the Matilda gold project and delivers additional financial strength and flexibility to Blackham,” he said.

Today the company also announced a resource upgrade for the Bulletin deposit at Matilda.

Bulletin has an indicated and inferred resource of 1.6 million tonnes at 4.8 grams per tonne gold for 247,000 ounces of gold.

Ounces were slightly lower than the previous estimate but grade was up from 3.3gpt previously.

Matilda has a total resource of 45Mt at 3.3gpt gold for 4.7 million ounces of gold.

“To date Blackham has focused its efforts on reworking known resources from or adjacent to existing open pit and underground workings within the Matilda and Wiluna goldfields,” Dixon said.

“Blackham has only just begun to unlock the geological potential of the Matilda, Quartz reefs and Lake Way extensions and regional prospects.

“We will continue to strengthen and lengthen our reserves as well as ramp up our search for game-changing discoveries in a gold project with a 9Moz gold endowment.”

Shares in Blackham dropped 3.6% to 53.5c.