White Rock strikes pivotal deal

By Justin Ware. Published at Dec 13, 2017, in Small Caps

White Rock Minerals (ASX:WRM) has informed the market that it has entered into an Equity Placement Facility with Kentgrove Capital Growth Fund.

The flexible agreement will take place over the next 36 months, with the investment fund to provide WRM with up to $7.2 million via placements of fully-paid ordinary shares.

WRM may seek multiple payments under the facility of up to $200,000 each (or a higher amount by mutual agreement), and can determine when placements occur.

For each placement, Kentgrove Capital will issue shares at a 5% discount to a volume of weighted average price (VWAP) over the duration of the placement, which cannot be less than the minimum issue price determined by WRM.

The structure of the facility will cause minimal dilution to existing shareholders and will expire on December 11, 2020.

WRM remains a speculative stock and investors should seek professional financial advice if considering this stock for their portfolio.

The fulfilment of the facility and/or placements is subject to the satisfaction of several conditions, including sufficient liquidity in the market for WRM shares during the applicable placement period.

WRM’s Managing Director and CEO, Matt Gill, has welcomed the support of Kentgrove Capital.

“This innovative form of equity financing provides White Rock with great flexibility as it looks to advance its two assets, in particular its exciting and globally significant zinc – silver – lead – gold VMS project in Alaska.

“This facility allows White Rock to draw down funds on short notice, and based on the criteria set by the company: placement period, minimum issue price and amount of funding. The company retains control of the facility at all times, and is under no obligation to use the facility.”

Either company may terminate the facility at no cost upon giving 14 days’ notice, which honours the termination provisions provided in the agreement.

A predetermined establishment fee of 6,050,000 shares and 15 million 3-year options have been issued to Kentgrove Capital.

The 3-year options are as follows: 5 million exercisable at a price per option of $0.02, 5 million with an option of $0.03 and 5 million with an option of $0.04.

An additional 30 million shares have been issued to Kentgrove Capital as collateral, which will be credited or returned to WRM upon expiration or termination of the agreement.

S3 Consortium Pty Ltd (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 only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

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