Gutnick likely to take stake in gold minnow

THE mining veteran Joe Gutnick may own almost 20 per cent of gold minnow Blackham Resources when the company emerges from a trading halt, perhaps as early as Monday morning.

Blackham asked for a trading halt on Friday ‘‘pending the release of an announcement to the market regarding the company’s funding arrangements’’.

It told the ASX it would resume trade by Wednesday morning ‘‘or upon the release by the company of the announcement regarding its fund-raising arrangements’’.

Market sources said Mr Gutnick was likely to take an initial stake of 19.9 per cent, with further funding expected to be available over time.

Shares in Blackham, which has a market capitalisation of just $9.6 million, last changed hands at 15¢.

The company burnt through $1.32 million in cash in the three months to the end of December, leaving it with just $173,000 cash, it told the exchange on Thursday.

Its efforts are concentrated on exploring and developing the Matilda gold project in Wiluna, Western Australia, which last month said it could contain up to 1.5 million ounces of gold.

It moved into gold about a year ago after having difficulty finding a partner to develop its Scaddan coal-to-liquid project through to production.

Matilda was one of a clutch of gold assets formerly owned by Mr Gutnick’s listed vehicle Great Central Mines, which was taken over by Robert Champion de Crespigny’s Normandy Mining in controversial circumstances in 1999.

Normandy was in turn taken over by American gold producer Newmont in 2002.