Bellevue stock falls on discounted A$150m capital raise
The share price of Bellevue Gold sunk 22% on Friday, as the gold miner unveiled a discounted capital raise of A$150-million.
The ASX-listed company received firm commitments for a fully underwritten share placement to institutional investors at A$1.55 a share.
The issue price is a 15.3% discount to the last closing price of A$1.83 a share on July 24, and a 14.5% discount to the five-day volume weighted average price of A$1.81 a share.
When trading in Bellevue’s stock resumed on Friday, its share price fell to A$1.44 apiece.
Bellevue said the placement received strong support from existing and new domestic and offshore institutions.
Placement proceeds would be used to repay debt, unlocking project free cash flow to allow Bellevue to self-fund expansion in line with its updated five-year growth plan, and to support accelerated exploration and growth.
This follows the company successfully delivering the Bellevue gold project from discovery to production in under six years, with commercial production achieved in May.
“With the benefit of the enhanced financial flexibility we now have, our team’s focus will continue to be on unlocking the capability and value of this special mining operation by materially growing production and reducing costs, in order to maximise free cash flows and returns for our shareholders.
“We are also excited about the opportunity to recommence exploration at the Bellevue gold project, following two years of very limited exploration during commissioning and ramp-up, with a number of highly-prospective opportunities to grow the resource,” said MD and CEO Darren Stralow.
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