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Bellevue Gold Limited (ASX:BGL) has successfully secured firm commitments for a fully underwritten share placement, raising AU$150 million. The placement will issue new shares at AU$1.55 each, representing a 15.3% discount to the last closing price of AU$1.83 on July 24, 2024, and a 14.5% discount to the 5-day volume-weighted average price (VWAP) of AU$1.81. This placement received overwhelming support from both existing and new institutional investors, with demand far exceeding the AU$150 million target.
Use of Proceeds
The funds raised from the placement will be utilized to repay debt, thereby freeing up project cash flow and enabling Bellevue to self-fund its expansion in line with the updated 5-Year Growth Plan. Additionally, the proceeds will support accelerated exploration and growth initiatives. This funding follows Bellevue's successful transition from discovery to production at the Bellevue Gold Project, with commercial production commencing in May 2024.
Trading and Settlement
Bellevue shares are expected to resume trading on the ASX today, July 26, 2024. The new shares from the placement are scheduled to settle on July 30, 2024, and begin trading on the ASX on July 31, 2024. These new shares will rank equally with the existing shares.
Share Purchase Plan (SPP) Announcement
In addition to the placement, Bellevue has announced a share purchase plan (SPP) aiming to raise up to AU$25 million. Shares under the SPP will be offered at the same price as the placement, AUU$1.55 per share. While the SPP is not underwritten, Bellevue reserves the right to scale back applications if demand exceeds A$25 million or to accept oversubscriptions, subject to ASX Listing Rules.
The SPP will be available to eligible shareholders in Australia and New Zealand who were on the register at 5:00 pm (AWST) on July 24, 2024. The offer period for the SPP is expected to run from August 1, 2024, to August 21, 2024, though these dates are subject to change at Bellevue’s discretion.
Management and Coordination
The placement was jointly managed and underwritten by Macquarie Capital (Australia) Limited, Canaccord Genuity (Australia) Limited, and UBS Securities Australia Limited. These institutions acted as Joint Lead Managers, Underwriters, and Joint Bookrunners, ensuring the successful execution of the placement.
