Blackheath Resources (BHR.V) has announced it has closed a second tranche of its earlier announced private placement, raising an additional C$221,000 through issuing 552,500 units. Each unit was priced at C$0.40 and contains one common share and half a purchase warrant. Each full warrant allows the unitholder to acquire another share at C$0.53 within 2.5 years of closing date.

The total proceeds of this financing (which was conducted at almost twice the current share price) now stand at C$721,000 and after talking to Blackheath’s management team, this amount will still increase and more tranches are expected to be closed in the next few weeks and months. Not only is Blackheath raising cash at a substantial premium to the current share price, its CEO is also participating and has invested C$21,000 in this financing round. This is a great vote of confidence as CEO’s only very rarely buy shares at twice the market price.

Meanwhile, drilling at Covas has now been completed and this 17-hole drill program will allow Blackheath to release an updated and NI43-101 compliant resource estimate shortly. Keep in mind the historic estimate stands at just over 900,000 tonnes at an average grade of 0.78%WO3 for 720,000 mtu of tungsten. Updating the historic estimate to NI43-standards will obviously be the most important achievement, but we are also hoping for a (small) resource increase.

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Disclosure: The author holds a long position in Blackheath Resources. Blackheath is a sponsor of the website. Please see our disclaimer for current positions.

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