White Rock Minerals Ltd (ASX:WRM, OTCQX:WRMCF) has closed out a $2.25 million placement of fully paid ordinary shares to institutional and sophisticated investors.
The company announced the bid on December 6 and more than nine million shares were quickly snapped up at an issue price of A$0.24 each. Shares acquired under placement will rank equally with existing shares.
White Rock plans to use its earnings for in-mine and regional exploration activities at its high-grade Woods Point Gold Project in Victoria.
It also plans to recapitalise the Morning Star gold mine and processing plant, including conducting some maintenance on the facility. The rest of the funds will provide a welcome injection of working capital.
The inflow of cash sees White Rock well placed to conduct its ongoing asset review, during which it hopes to discover cost savings and improve value.
The Woods Point Gold Project
Woods Point represents a highly prospective exploration package of around 660 square kilometres in one of Victoria’s largest historic goldfields.
White Rock first acquired the project following a merger with AuStar Gold in August 2021.
The project includes an 80,000-tonne-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 has its sights trained on underground exploration to build a resource base that justifies a long-term production plan and ensures a sustainable operation before restarting gold production.