White Rock Minerals to raise $5.2M to progress globally significant Red Mountain VMS project
White Rock Minerals (ASX:WRM) has announced that it plans to raise up to $5.2 million to fund exploration activities at its globally significant high-grade zinc VMS Red Mountain Project in Alaska.
The funds will build on WRM’s existing geological knowledge of the mineralisation, increase confidence in the Resource base, expand the already globally significant Resources at the existing deposits and discover new deposits.
WRM intends to issue up to 517 million new shares and 258 million new options to raise up to $5.2 million, comprising:
- Up to $1.6 million institutional Placement
of fully paid ordinary shares
- Up to $3.6 million via a 1-for-3
partially underwritten pro-rata non-renounceable Entitlement Offer of fully
paid ordinary shares.
The offer price of $0.01 per share represents a 33% discount to the last traded price of White Rock shares and a 25% discount to the 15 day and one-month volume weighted average price (VWAP).
All new shares under the Placement and Entitlement Offer come with a 1 for 2 unlisted Option exercisable at $0.02 expiring three years from the date of the placement shares issue and are subject to shareholder approval.
The non-renounceable entitlement offer is only available to existing eligible shareholders, and is not open to the public.
Lead manager and underwriter, DJ Carmichael, has already received firm acceptances for the Placement and has underwritten the Entitlement Offer of $1.6 million.
Here is the work planned at Red Mountain for the 2018 exploration season and the expected expenses:
It should be noted that WRM is an early stage play and anything can happen, so seek professional financial advice if considering this stock for your portfolio.
CEO and Managing Director Matt Gill commented: “This Equity Raising is a game-changer for White Rock. With this Equity Raising, White Rock will be able to get on the ground in Alaska this coming northern spring and conduct an aggressive exploration program on our globally significant, high-grade zinc VMS project at Red Mountain. We are very excited about the potential for this project, and the news flow that should come from a successful drilling campaign and a more regional geophysics and geochemistry program here.
“Since acquiring the Red Mountain project in early 2016, we have expanded our strategic footprint 10-fold, to 143 square kilometres, and have also released a maiden Mineral Resource that immediately placed the Red Mountain Project in the top quartile of undeveloped high-grade VMS (zinc, silver, gold) deposits globally. Importantly, the two deposits identified within the company’s extensive land holding immediately placed the Red Mountain zinc project as one of the highest grade and more significant deposits of any zinc company listed on the ASX and an important VMS asset within a global context.
“Our drill program for the 2018 field season aims to further build on our geological knowledge of the mineralisation, increase confidence in the Resource base, expand the already globally significant Resources at the existing deposits and discover new deposits. The Board is very appreciative of the strong 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. This is an exciting time for White Rock.”
The company also provided an updated company presentation to the market in which it provides a thorough overview of the company’s Red Mountain and Mt Carrington projects, its management team, and key risks, as well as comparisons with key peers.