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Cartesian provides continued financial support for White Rock
2 minute read
Just prior to the market closing on Tuesday, White Rock Minerals (ASX:WRM) advised that Cartesian Royalty Holdings (CRH) had subscribed for a $500,000 equity placement under Tranche 2 of its subscription agreement.
The equity placement is in connection with a two phase conditional financing package to assist WRM in developing its northern New South Wales Mt Carrington gold/silver project through to full commercial production.
An affiliate of the US-based Cartesian Capital Group, CRH’s continued support for WRM is not only a positive factor from a financial perspective, but it is also an endorsement of the group’s belief in the Mt Carrington project.
Albeit, this is an early stage play and investors considering this stock for their portfolio should seek professional financial advice.
On this note WRM chief executive, Matt Gill said, “White Rock welcomes the continuing support from its strategic partner, Cartesian Royalty Holdings, which shares the vision to develop the Mt Carrington gold and silver project in northern New South Wales to its full potential”.
The initial financing package which was negotiated in June 2016 involved a proposal to assist the advancement of the Mt Carrington project through feasibility and permitting, and then move directly into construction, commissioning and commercial production, subject to the delivery of a successful Definitive Feasibility Study (DFS) and associated approvals.
WRM’s shares surged nearly 30% at the start of February, but as the S&P/ASX 200 Gold Index (XGD) came off in recent weeks so did WRM’s share price.
However, the company is more of a medium-term story that is likely to benefit from upcoming milestones such as the DFS as it moves towards construction.