14 March 2014
Manager of Company Announcements
Australian Securities Exchange
Level 6, 20 Bridge Street
Sydney NSW 2000
By E-Lodgement
Financing Update
Black Mountain Resources Limited (Black Mountain or the Company), the silver
focused development company with interests in the USA, notes the recent
announcement by Alcyone Resources Limited (ASX: AYN) ("Alcyone") relating to
the termination of Alcyone's A$25m financing arrangement with Platinum
Partners. Alcyone now intends to undertake a non-renounceable rights issue to
raise approximately A$13.8 million. Alcyone remains committed to the previous
A$3m financing in Black Mountain but can only be in a position to provide the
funding once the proposed rights issue is completed. The consideration
securities being issued to Alcyone in respect of the financing facility will be
appropriately adjusted or otherwise dealt with in the event that the funding is
not provided.
Taking the timing of this rights issue into consideration and in order to
expedite the project development, the Black Mountain Board has secured a $1.5
million facility (on similar terms) subject to finalising definitive agreements
anticipated next week. The funding will be used to finalise and move the
Company's New Departure Silver Project into production.
Black Mountain Chairman Peter Landau said, "Naturally, we are disappointed that
this funding has been delayed and are aware of the implications on timelines at
the New Departure Project. However, with limited work now required to bring the
project into production we anticipate that this additional interim funding will
ensure minimum disruption to Black Mountain's plans to become a cash
generative, low cost producer of high grade silver. With this in mind, we look
forward to providing further updates shortly."
The Company proposes to issue 8,301,095 fully paid ordinary shares, 14,985,000
Listed Options ($0.20; 7 May 2015), 1,000,000 Unlisted Options ($0.12; 3 years
from issue date) and 5,000,000 Unlisted Options ($0.10; 30 November 2016)
pursuant to debt facilities and in lieu of interest, advisor fees and local
management on 31 March 2014 and otherwise following regulatory and/ or
shareholder approval as applicable. The shares will be issued at a deemed issue
price of $0.07.
For and on behalf of the Board
Peter Landau
Executive Chairman
For further information please visit www.blackmountainresources.com.au or
contact:
Black Mountain Resources Limited Black Mountain Resources Limited
Shannon Robinson Eva Bezruchko
Executive Director | Corporate Investor Relations
Relations
E: eva@blackmountainresources.com.au
E:
shannon@blackmountainresources.com.au T: +44 (0) 207 025 7040
T: +61 (8) 9488 5220
Media (Australia) Media (UK)
PPR St Brides Media & Finance Limited
David Tasker Elisabeth Cowell
T: +61 (8) 9388 0944 T: +44 (0) 207 236 1177
Joint Broker (UK) Joint Broker (UK)
Westhouse Securities Limited Xcap Securities
Martin Davison Jon Belliss
T: +44 (0) 207 601 6100 T: +44 (0) 203 693 1493
Nominated Advisor (UK)
RFC Ambrian Limited
Stuart Laing
T: +61 (8) 9480 2500
About Black Mountain Resources Limited
Black Mountain Resources Limited is a dual listed (ASX | AIM: BMZ) silver and
gold focused development company focussed on the advancement of three highly
prospective previously operating assets located in two of the world's most
developed and proven silver and gold mining regions of Idaho and Montana, USA.
The Company holds a 70% interest in the New Departure Silver Project, the
Conjecture Silver Project and the Tabor Gold and Silver Project pursuant to 45
year leases from Chester Mining Company, Lucky Friday Extension Mining Company
and Brush Prairie Minerals respectively. Black Mountain plans to implement low
cost production and development programmes across all three assets. It is also
implementing exploration programmes to capitalise on the exploration upside
potential apparent across its portfolio.
Black Mountain Resources Limited was incorporated on 29 October 2010 and is
listed on the Australian Securities Exchange (ASX) and London's AIM Market -
trading codes BMZ and BMZO.
Forward Looking Statement
Certain statements made during or in connection with this communication,
including, without limitation, those concerning the economic outlook for the
silver market, expectations regarding silver ore prices, production, cash costs
and other operating results growth prospects and the outlook of the Company's
operations including the likely commencement of commercial operations of the
New Departure and Conjecture Silver Projects, its liquidity and the capital
resources and expenditure, contain or comprise certain forward-looking
statements regarding the Company's development and exploration operations
economic performance and financial condition. Although the Company believes
that the expectations reflected in such forward-looking statements are
reasonable, no assurance can be given that such expectations will prove to have
been correct. Accordingly, results could differ materially from those set out
in the forward-looking statements as a result of, among other factors, changes
in economic and market conditions, success of business and operating
initiatives, changes in the regulatory environment and other government
actions, fluctuations in silver ore prices and exchange rates and business and
operational risk management. For a discussion of such factors refer to the
Company's most recent annual report and half year report. The Company
undertakes no obligation to update publicly or release any revisions to these
forward-looking statements to reflect events or circumstances after today's
date or to reflect the occurrence of unanticipated events.
Black Mountain Resources Limited Ground Floor Suite 1A, Princes House
ABN 55 147 106 974 1 Havelock Street 38 Jermyn Street
www.blackmountainresources.com.auWest Perth WA 6005 London SW1Y 6DN
info@blackmountainresources.com.auTel: +61 (8) 9488 5220 Tel: +44 (0) 207 025 7040
Black Mountain Resources Limited Ground Floor Suite 1A, Princes House
ABN 55 147 106 974 1 Havelock Street 38 Jermyn Street
www.blackmountainresources.com.auWest Perth WA 6005 London SW1Y 6DN
info@blackmountainresources.com.auTel: +61 (8) 9488 5220 Tel:
+44 (0) 207 025 7040