White Rock Minerals Ltd (ASX:WRM, OTCQX:WRMCF) has initiated a capital raise of up to $11.3 million incorporating a placement and entitlement offer
WRM has received firm commitments for a placement of new shares to certain institutional and sophisticated investors at 24 cents per share to raise approximately A$2.25 million. It is expected that approximately 9,375,000 new shares will be issued as part of the placement on or about December 10, 2021.
The offer price for the entitlement offer is also 24 cents per new share and eligible shareholders will be able to subscribe for one new share for every four existing fully paid ordinary shares held at 7.00 pm (Melbourne time) on December 13, 2021. If fully subscribed, the entitlement offer will raise up to $9.1 million before costs.
Funds raised from after costs will be used for:
- In-mine and regional exploration activities at its high-grade Woods Point Gold Project in Victoria;
- Recapitalisation of the Morning Star gold mine and gold processing facility and for care and maintenance of the min; and
- Working capital.
Funding aggressive exploration
“White Rock acquired the Woods Point Gold Project in August and by October we had commenced diamond drilling at the high-grade Morning Star gold mine, with two diamond rigs now operating there,” White Rock MD & CEO Matt Gill said.
“Work has also commenced on planning our regional exploration program, with multiple highly prospective targets already identified across our extensive 660 square kilometres tenement package.
“This capital raise will see White Rock continue this aggressive exploration focus on the significant in-mine and regional exploration potential of the project.
“The board is very appreciative of the support shown from current shareholders, and the interest and support being shown from the new investors now joining the White Rock journey through this equity raising.”
About Woods Gold
The Woods Point Gold Project is a highly prospective exploration area of 660 square kilometres in one of Victoria’s largest historic goldfields.
WRM acquired the project by way of a merger with AuStar Gold in August 2021. The acquisition included an 80,000 tonnes per annum gravity gold processing plant and a mine that has produced more than 880,000 ounces at an average grade of 26.5 g/t, as well as a workforce of 23 employees.
The company’s immediate focus is underground exploration to build a resource base sufficient to define a long-term production plan and ensure a sustainable and profitable operation before restarting gold production.
A systematic regional exploration program will be undertaken by WRM in parallel.
WRM will conduct regional geochem and geophysics, before moving onto the best of the many drill targets already identified.