White Cliff Minerals Ltd (ASX:WCN) will undertake a renounceable 1:6 rights issue priced at $0.003 to raise circa $1.65 million in funding.
For every new share, shareholders will receive one free attaching option exercisable at $0.01 expiring 30 June 2019.
Notably, the rights issue is underwritten to the amount of $1 million.
Funds to be used for exploration at multiple projects
The funds raised will be used primarily for:
• Further exploration of selected cobalt and nickel targets within its Western Australian cobalt project tenement package;
• Exploration of its flagship Aucu Gold Project in the Kyrgyz Republic; and
• General working capital.
READ: White Cliff Minerals sees prospect for shallow cobalt nickel mining at Coglia Project
Todd Hibberd, managing director, said: “The recent identification of multiple cobalt-nickel projects in Western Australia that have substantial economic potential and the upcoming resource update from the Aucu gold-copper project in the Kyrgyz Republic provide a platform for strong positive news flow.
“If the maximum funds are raised the company will be funded such that its primary focus can be on defining cobalt and nickel resources via drilling in WA and completing the resource update on the Aucu Gold project.”
Offer planned to open 7 March 2018
The record date to identify shareholders entitled to participate in rights offer is 5 March 2018.
Eligible shareholders will then be able to participate in the offer which plans to open 7 March 2018 and close two weeks after.