White Cliff Minerals Ltd (ASX:WCN) is set to raise $2 million through an underwritten placement and share purchase plan, subject to finalisation of documentation.
$750,000 is set to be raised through a share placement to professional and sophisticated investors comprising 100 million shares priced at $0.0075.
A further $1.25 million will then be raised in a share purchase plan also priced at $0.0075.
Shares issued will come with a 1:1 attaching option exercisable at $0.013 expiring 31 December 2018 pending lodgement and approval of a prospectus.
The placement is expected to be complete in the first week of November.
Todd Hibberd, managing director, commented:
“Following the recent successful exploration results in both the Kyrgyz Republic and Western Australia the underwritten $2 million in funding enables the company the luxury to increase the extent of current and planned drill programs on its projects.”
Background
White Cliff is advancing its 89% owned Aucu gold deposit located in the Kyrgyz Republic and its 100% owned Merolia gold project located near Laverton, Western Australia.
Aucu hosts a resource of 1.15 million tonnes grading 4.2 g/t gold for 156,000 ounces of contained gold at a 1.0 g/t cut off grade.
Drilling has discovered significant surface expressions of visible gold along strike from this resource including 8 metres at 55.2 g/t gold and 4 metres at 59.9 g/t gold.
Merolia hosts the Ironstone, Comet Well and Burtville East gold anomalies.
Historical drilling intersected substantial mineralisation including 5 metres at 33 g/t gold, 2 metres at 6.65 g/t gold and 3 metres at 5.3 g/t gold.
Most recently, White Cliff sampled gold grades of up to 38 g/t gold from surface rock piles at the Burtville East gold prospect.
Use of funds
Funds raised will be used primarily to fund increased drilling and exploration activity.
Immediate exploration targets include:
- Further drilling at the Aucu gold prospect aimed at updating its JORC compliant gold resource; and
- Drill testing high grade gold soil anomalies at the Merolia gold project.