White Rock Minerals to raise $5.2M to progress globally significant Red Mountain VMS project

|

Published 22-MAR-2018 12:00 P.M.

|

3 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.


Click Here to View Latest Articles

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:

White rock minerals red mountain breakdown

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.

tags

ZINC


General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.

 

Discover Small Cap
Biotech Stocks

Join thousands of other Investors following our stock commentary for Free

X