Bellevue Gold Ltd (ASX:BGL) has wrapped up its share purchase plan (SPP), which closed at 5pm (AWST) last Friday.
It was open to 11,244 eligible shareholders, and the company fielded applications from 3,329 eligible shareholders, representing a participation rate of around 29.66% and an average application amount of roughly $17,768.
Ahead of target
Applications under the SPP added up to around $59.25 million, well ahead of the original $10 million target.
In light of the “overwhelming demand”, Bellevue has exercised its discretion under the terms of the SPP offer booklet released to the ASX on December 14 to increase the size of the SPP to $25 million, up from the original target size of $10 million.
The combined funds raised under the placement and SPP – $85 million in total (before costs) – will be channelled into accelerating underground development, exploration drilling and additional working capital.
Bellevue managing director Steve Parsons said the demand for the SPP reflected the strong outlook for the Company and its Bellevue Gold Project in WA.
“The demand for the SPP was exceptionally strong,” Parsons said. “This reflects the rapid progress we are making at the Bellevue Project and the robust position in which the company now finds itself.
Australia’s next major gold producer
“Bellevue is well on track to be Australia’s next major gold producer with low costs, strong free cashflow and an enviable status as the country’s first carbon-neutral gold miner.
“On behalf of the board, I would like to thank all shareholders for their support.”
The strong interest in the SPP required the company to scale back valid applications.
The scale back methodology implemented was designed to provide the most equitable outcome for shareholders to limit dilution relative to their shareholding at the record date of Monday December 5, consistent with the allocation policy adopted for the institutional placement.
In particular, allocations were made on a pro rata basis having regard to shareholding size as at the record cate, subject to a minimum allocation of 1,000 shares per eligible application.
Ineligible applications rejected
Applications from ineligible shareholders were rejected, as were duplicate submissions from multiple holders with the same name, to provide the most equitable outcome to the largest number of shareholders.
Excess application money resulting from the scale back will be refunded to shareholders by direct credit deposit to their nominated bank account or by cheque paid in Australian dollars.
A total of 23,809,537 new fully paid ordinary shares will be issued today under the SPP and are expected to trade from 23 January 2023.
Holding statements will be despatched on or around 24 January 2023. The company recommends shareholders confirm their actual holding prior to trading in new shares under the SPP.