Bellevue Gold directors show confidence in gold strategy through SPP participation

Bellevue Gold Ltd (ASX:BGL) (OTCMKTS:BELGF) directors have shown confidence in the company’s growing gold story by participating in the recent $35 million share purchase plan, which exceeded the original target by 75%. Three directors were allotted $30,000 worth of fully paid ordinary shares at $1.00 each under the SPP on August 18, which followed last month’s $100 million fully underwritten share placement. BGL originally targeted $20 million in the SPP and received valid applications from 2,896 eligible shareholders representing a participation rate of 37.83% and an average application amount of around $16,000. Director purchases Managing director Stephen Parsons acquired 30,000 SPP shares in an indirect interest and now holds 30.03 million shares in that interest. Executive director and company secretary Michael Naylor acquired 30,000 shares in an indirect interest and now holds 1.33 million in two indirect interests. Non-executive director Fiona Robertson secured 30,000 shares in an indirect interest and now holds 66,300 in that interest. The capital raisings provide a strong show of support for the company's gold strategy centred on its namesake project in Western Australia. Use of funds Funds will be allocated towards: Growth of the existing 2.3 million ounces resource at Bellevue Gold Project; Further expand the indicated resource of 860,000 ounces at 11.6 g/t and grow the high-grade core of 480,000 ounces at 15.5 g/t by upgrading more of the inferred resource; Ongoing step-out exploration for further discoveries as all lodes remain open in every direction; Further regional exploration; Reestablish access for mechanised re-entry to underground and establish drill platforms; Fund underground mine development, including production decline and infrastructure; Establish non-processing infrastructure; and General working capital and offer costs. Support for strategic plan Of the SPP, managing director Steve Parsons said: “We are extremely pleased with the confidence and support our retail shareholders have shown. “The logic behind the share purchase plan was to allow our retail shareholders the ability to participate in the raising on the same terms as the institutional shareholders. “Given market circumstances around COVID-19, it prevented us from offering a SPP in our last raise, so it has been great to reward them this time around.” Following the placement, he said: “The strong demand from institutions around the world reflects the quality of the Bellevue Gold Project, its Tier-1 location and its high-grade mineralisation and the immense potential for further growth. “The placement demonstrates clear support for our strategic plan to unlock the full value of an exceptional asset with extremely high grades and scope for further growth.”