White Cliff Minerals Ltd (ASX:WCN) will raise up to $1.88 million from a 1:2 non-renounceable rights issue priced at $0.002.
White Cliff has dispatched the offer documents to eligible shareholders.
The company has also mandated the underwriter to raise up to an additional $1 million by way of a share placement at the same price, on a best endeavours basis.
The new funds will be predominately used for drilling of the company’s flagship Aucu gold project (WCN 90%) in the Kyrgyz Republic, and selected old targets within the company’s Western Australian gold project tenement package.
Growing the Aucu gold resource
Recently, White Cliff posted a 93% increase to its JORC resource at Aucu, which now stands at 1.8 million tonnes at 5.2 g/t gold for 302,000 ounces of gold.
The new resource estimate represents a 23% increase in gold grade and also includes a Inferred copper resource of 608,000 tonnes at 0.64% copper for 3,870 tonnes of copper.
WATCH LATEST VIDEO - White Cliff kicks off drilling at Aucu
Earlier in the month, White Cliff discovered a 4-metre wide outcropping mineralised zone.
The company has also mobilised a second drill rig to site.