White Cliff Minerals (ASX:WCN) is raising $1.2 million through an oversubscribed share placement priced at $0.006 to professional and sophisticated investors.
This includes 1 free attaching option exercisable at $0.02 on or before 31st December 2017 for every 2 shares subscribed. WCN is currently trading at $0.008.
Proceeds will be used to fund the following exploration:
- Further drilling at the Aucu gold prospect in the Kyrgyz Republic where significant surface expressions of visible gold have been discovered along strike from the company’s existing gold resource of 156,000 Ounces at 4.2 g/t of gold from surface;
- Drilling of numerous nickel sulphide targets at the Merolia nickel and copper project in Western Australia where recent ground electromagnetic MLEM surveys have identified several conductors occurring along the basal contact of interpreted ultramafic units within the Diorite Hill layered mafic-ultramafic intrusion; and
- Drill testing down dip and along strike from historical high grade gold intersections at the company’s Ironstone gold project.
Todd Hibberd, managing director, commented:
“We are very pleased with the strong response received for this Placement.
“The strength of the raising demonstrates the strong interest and high expectations investors have for both our high grade gold project in Central Asia and the high quality nickel-copper/gold projects we have in Western Australia.
“Funds raised from the Placement will provide White Cliff with the funding required to further drill test the Aucu gold discovery at Chanach, to drill test the category 1 nickel targets at the Merolia project in WA, which have coincident EM and soil geochemical anomalies and to drill test the drill ready gold targets at Ironstone in WA.
“We remain very excited by the potential for significant discoveries at Chanach, Merolia and Ironstone.”
Placement Details
The Placement will be completed in two tranches with approximately 17.9 million shares issued in the first tranche, pursuant to the Company's 15% capacity under ASX listing rule 7.1.
The remaining 182.1 million shares will be issued in the second tranche, conditional on shareholder approval at a General Meeting to be held on or around Tuesday, 27th October 2015.
Aucu Project
Recent surface exploration at Aucu uncovered visible gold at surface in the Upper Gold Zone, Lower Gold Zone and Southern Gold Zone.
Notable results to date include 1 metre at 35 grams per tonne gold, 4 metres at 22.3g/t gold and 3 metres at 11g/t gold.
The zones each extend over 3,000 metres in length and are located at elevations from 2,500 metres to 3,200 metres, indicating that the Aucu gold system is extensive both along strike and at depth (700+ metres).
White Cliff is currently continuing trenching and sampling to refine the location of the mineralised zones along strike to assist with identifying the optimal drill hole positions.
About 3,000 metres of drilling is expected to commence shortly.
Merolia Nickel
The Merolia project is located close to the Windarra nickel mine and associated infrastructure.
White Cliff has identified 5 high impact nickel targets in a similar setting to Sirius Resources (ASX:SIR) Nova-Bollinger nickel-copper-cobalt deposits.
Three of these are untested electromagnetic conductors on basal contacts with high nickel in-soils with the company planning 1,000 metres of reverse circulation drilling in the fourth quarter of 2015.
It will also carry out 1,000 metres of drilling to test two targets on the basal contact within a large ultramafic unit that is 7 kilometres by 1.5 kilometres.
Ironstone
The Ironstone prospect is located within the Laverton Gold Project within Western Australia’s northern Goldfields.
This provides extensive infrastructure in a world class region that includes the 8 million ounce Wallaby and 7Moz Sunrise Dam mines.
Analysis
The oversubscribed share placement nicely sets up White Cliff Minerals’ upcoming drilling at the high grade Aucu gold project in Central Asia and quality nickel-copper/gold projects in Western Australia.
It also reflects the high interest from investors since the discovery of visible gold that has lifted the excitement quotient given potential for a multi-million ounce discovery.
The finds at Aucu are backed up by the presence of the giant Kalymakyr Area (93 million ounces of gold) and Terek Sai deposit (7.5 million ounces of gold) in the region while Merolia has a striking geological similarity to the setting which hosts Sirius’ Nova-Bollinger nickel-copper-cobalt deposits.
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