Shares in junior gold explorer Blackham Resources surged almost 70 per cent after the company appointed Joseph Gutnick as its chairman and announced a $13 million funding deal.
Shares in the company closed 10 cents, or 67 per cent, higher at 25 cents on Monday.
Blackham Resources Ltd said it had secured the funding package for its Matilda Gold Project in Western Australia with Great Central Gold, a private company controlled by Melbourne-based mining investor Mr Gutnick.
Blackham, which has a market capitalisation of $9.6 million, said the Matilda Gold Project near Wiluna had 1.5 million ounces of gold resources.
Great Central will be issued 15.79 million Blackham ordinary shares at 21 cents per share to raise $3.32 million.
In addition to the share placement, Great Central has agreed to subscribe for $10 million in convertible notes in Blackham.
"Blackham is pleased to advise that the board of Blackham offered, and Mr Gutnick has agreed, that at the completion of the placement Mr Gutnick will be appointed non-executive chairman of the company," Blackham said in a statement on Monday.
Blackham, which listed in 2006 at 20 cents, asked for a trading halt on Friday when at the time it was trading at 15 cents.
Mr Gutnick has been a director of several gold mining companies including Great Central Mines, which previously owned the Rosemont, Wiluna, and Matilda Gold projects.
Blackham Resources managing director Bryan Dixon said securing funding in a difficult market for emerging gold companies would enable management to continue adding value at Matilda.
"The company plans to immediately commence a drilling program targeting the Williamson (in WA) and Matilda mine areas," Mr Dixon said.
Mr Gutnick said he had waited many years for the right opportunity re-enter the East Murchison and Yandal Belts in WA.
"I look forward to exploring and developing world-class gold mines in a province where I have enjoyed much success," Mr Gutnick said.
Blackham Resources was founded by Cazaly Resources' Nathan McMahon who holds a 10 per cent stake in the company, according to Iress data.