The Stage 1 expansion is part of Blackham's operating strategy to expand gold production at the 6.4-million-ounce Matilda-Wiluna Gold Operations in WA.
Stage 1 intends to increase production to around 100,000-120,000 ounces of gold per annum.
Longer term benefits to the deal
Blackhams executive chairman Milan Jerkovic said: “Establishing a relationship with Polymetal for the sale of all non-committed portions of Stage 1 gold concentrate production is a significant milestone for Blackham to deliver stage 1.
"And then entering into an ongoing alliance agreement with a significant global counterparty such as Polymetal provides a technical and strategic pathway for the companys vision to develop its sulphide deposits.
"Longer term this will enable the company to expand its production from Wiluna and consider other regional opportunities.
"We look forward to working with and developing the relationship with a partner that will help provide a sustainable and commercial outcome for the Wiluna Goldfields."