Blackham Resources (ASX:BLK) has inked a deal with New York based fund manager Lind Partners for an investment of up to $23 million.
The initial convertible security of $7.5 million will be used to repay debt and fund Wiluna drilling and expansion studies.
Under the agreement Blackham has the option to repay the convertible security in shares or cash.
Blackham MD, Bryan Dixon says the company has significantly boosted its gold production since January 2018 with the financing from Lind to remove short term debt service payments and improve its balance sheet.
Shares in Blackham (ASX:BLK) are trading 4.26 per cent higher to 5 cents.