White Cliff Minerals (ASX:WCN) has extinguished the final US$65,000 of convertible notes by way of a cash payment to Magna Group LLC.
This follows the conversion of around 6.2 million shares to the value of US$30,000.
White Cliff has now fully repaid all its convertible debt liabilities, which has the potential to remove an overhang on the stock.
White Cliff and Magna have mutually agreed to terminate the balance of the Magna Convertible Note Facility as the company no longer intends to drawdown upon the facility.
Share Purchase Plan
White Cliff has also completed the issue of shares under its recently oversubscribed share purchase plan (SPP). The SPP raised $1.23 million through the issue of 205.7 million shares.
Analysis
White Cliff has now fully repaid all its convertible debt liabilities, which has the potential to remove an overhang on the stock.
The company is now leveraged to news flow, which will be strong in the near-term, with drilling results expected soon from the Southern gold zone at the company's Aucu gold project in the Kyrgyz Republic.
The results are highly anticipated as drilling was just 400 metres south of the Aucu gold resource of 156,000 ounces at 4.2g/t gold.
Ongoing drilling is also targeting extensions to other gold zones.
A number of operating mines are within 50 kilometres of Aucu, including Charaat Gold’s (AIM:CGH) 6-million-ounce Charaat mine and Fortune LLC’s 5-million-ounce Ishtamberdy mine.
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