White Cliff plans $2.3m raising

White Cliff Minerals has announced plans to raise up to $2.3 million to fund exploration at the company’s gold deposit in Central Asia and across its Western Australian assets.

The company is offering a renounceable pro rata two-for-one rights issue at 1.5 cents each, with CPS Capital underwriting  $500,000 of the raising.

Shareholders will receive one free attaching option for every new share purchased with an exercisable price of 4.5 cents each in the next two years.

White Cliff managing director Todd Hibberd said the funds raised would be used primarily for drilling at its gold deposit in the Kyrgyz Republic in Central Asia.

“The company has delivered two significant exploration outcomes this year, with a 60 per cent increase in the gold resource at the Aucu gold-copper project in the Kyrgyz Republic and the identification of extensive and high grade cobalt and nickel results from the Coronation Dam project in Western Australia,” he said.  

“Both projects have substantial economic potential and provide a platform for further strong positive news flow and resource updates.

“By undertaking a rights issue, all existing shareholders will be given the opportunity to acquire new shares at the same price with a free attaching option for which the company will seek ASX quotation.

“If the maximum funds are raised the company will be funded such that its primary focus can be on defining cobalt and nickel resources via drilling in WA and defining further gold and copper resources at the Aucu gold project.”

Shares in White Cliff were off 28 per cent at 1.8 cents each at 2.55pm AEDT.