Eagle-eyed market watchers have likely noticed the Bellevue Gold Ltd (ASX: BGL) share price's sluggishness on Tuesday. The stock hasn't gone anywhere today, and there's a good reason why.
The S&P/ASX 300 Index (ASX: XKO) gold explorer entered a trading halt this morning as it undergoes a capital raise. It has also provided an update on its namesake project's development.
The Bellevue Gold share price closed at $1.21 on Monday. And there it's expected to stay until Thursday's open.
Let's take a closer look at what's going on with the ASX gold stock today.
Bellevue stock halted amid capital raise
The Bellevue Gold share price is on ice today as the company undertakes a $60 million placement.
New shares in the gold developer are being offered for $1.05 apiece under the placement – a 13.2% discount to the stock's previous close.
The company will also offer eligible shareholders the option to snap up new shares for the placement price under a $10 million share purchase plan (SPP). The SPP is expected to open next Wednesday.
The funds raised will go towards the Bellevue Gold Project's underground development and additional exploration. It will also provide more financial flexibility during project construction and ramp-up.
Bellevue managing director Steve Parsons says "every aspect of the project is going to plan or better", continuing:
Development rates, grade control drilling results, and exploration are all exceeding our expectations.
The success is providing us with an opportunity to unlock the value of the project sooner and to a greater extent than originally planned.
The project's first production is targeted for the second half of 2023, with ramp-up expected two months later.
Construction activities are well advanced and mining development is ahead of schedule. Approvals and permitting remain on track, with the company expecting pre-commercial production costs to come in at around $219 million.
Bellevue share price snapshot
The Bellevue Gold share price has been on a run lately. It's soared 53% over the last 30 days to sit 42% higher than it was at the start of 2022. It has also gained 53% since this time last year.
For comparison, the S&P/ASX All Ords Gold Index (ASX: XGD) has gained 16% in the last month. Though, it has fallen 9% year to date and 3% over the last 12 months.
