02/10/2014 - 12:51

White Cliff shares slide on loan agreement

02/10/2014 - 12:51

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Shares in Perth-based White Cliff Minerals have slumped on news it had signed a $US4 million funding agreement with New York-based investment firm Magna Equities to accelerate exploration at its Australian and Kyrgyz projects over the next two years.

White Cliff shares slide on loan agreement

Shares in Perth-based White Cliff Minerals have slumped on news it had signed a $US4 million funding agreement with New York-based investment firm Magna Equities to accelerate exploration at its Australian and Kyrgyz projects over the next two years.

White Cliff is set to receive the first $US500,000 within the next five business days.

As part of the deal, White Cliff will issue Magna with a $US1 convertible note for every $US1 received from Magna.

“This competitively priced funding facility provides the financial certainty to allow the company to pursue exploration programs that will add significant shareholder value,” White Cliff chairman Michael Langoulant said.

“The funding will allow additional drilling to be carried out at the Chanach gold and copper project where recent drilling has identified multiple mineralised zones with assay results up to 4 metres at 23.8g/t gold.

“In addition, the company will accelerate exploration, including drilling, on a suite of nickel and gold targets in Western Australia,” he said.

White Cliff’s share price fell by 15.4 per cent to 1.1 cents per share at 12:45pm. 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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