White Rock Minerals Ltd (ASX:WRM) (OTCMKTS:WRMCF) has completed the placement of fully paid ordinary shares to various institutional and sophisticated investors raising approximately A$8.578 million.
The company plans to use proceeds to fund its expanded Alaskan exploration activities in 2021 as well as for general working capital.
These activities include operating three diamond drill rigs at the large Last Chance Gold IRGS Prospect and the high-grade Red Mountain Silver-Zinc-Gold-Lead VMS Prospect.
Fully funded for 2021 season
White Rock's MD & CEO Matt Gill said: "With this injection of funds, we are now in the wonderful position of being fully funded for the entire 2021 season, allowing us to execute our aggressive three drill rig exploration program.
“The three drill rigs will be used to expand our significant high-grade silver-zinc VMS deposit at Dry Creek, test our large IRGS gold anomaly at Last Chance and drill test recently identified VMS targets never before drilled.
“Our exploration program kicks off in earnest this week when we will be flying airborne geophysics.
“This can only be described as an exciting time for White Rock and its shareholders.”
Placement details
As a part of the placement, a total of 16.82 million shares have been issued at A$0.51 per share.
Shares issued under the placement will rank equally with existing shares.
Viriathus Capital Pty Ltd and Sanlam Private Wealth Pty Ltd acted as joint lead managers to the placement.
Following the placement, substantial shareholder Crescat Portfolio Management LCC has lifted its interest to 10.86% from 9.39%.
Use of funds
The funds will be applied towards exploration at Last Chance and Red Mountain prospects and will include:
- Three drill rigs planned for the full season, up from one rig in past drill seasons;
- Surface reconnaissance and geochemistry;
- Surface geophysics;
- Airborne EM; and
- Working capital.