White Cliff Minerals has announced plans to raise $14.4 million in a bid to fast-track drilling activities at its Rae copper project in Canada.
White Cliff Minerals has announced plans to raise $14.4 million in a bid to fast-track drilling activities at its Rae copper project in Canada.
It is the junior’s second significant capital raise in the space of seven months, after tapping investors for $5 million in October last year.
As was the case back then, White Cliff’s strategic advisor John Hancock will cornerstone the placement, by way of his private family office Astrotricha Capital.
Under the placement, which will aim to raise $12.4 million, White Cliff told the market it would issue around 384.6 million new, fully paid ordinary shares at an issue price of 4.3 cents per share, which represents a 38.9 per cent premium to its final closing price of 2.9 cents, prior to ducking into a trading halt on May 14.
Bell Potter Securities were appointed as lead manager and bookrunner for the placement, while Canaccord acted as a co-lead manager.
Additionally, the Perth-based junior will conduct a $2 million share purchase placement, where around 76.9 million shares will be issued at 2.6 cents per share – representing a discount of 10.3 per cent.
“The successful completion of this capital raise is a testament to the quality of our Rae copper project and the confidence that investors have in our exploration strategy,” White Cliff managing director Troy Whittaker said.
“The ability to access the less dilutive flow through funds at a circa 40 per cent premium is a huge advantage and value accretive for shareholders.
“Further, John Hancock and his Astrotricha Capital family office cornerstone position in the raise, along with the support of other high net worth investors introduced by Astrotricha, reflects their shared vison for the future of White Cliff and underpins the company’s development plans for the Rae copper project.”
White Cliff said drilling, a mixture of diamond and reverse circulation, will restart at Rae in July.
As of 12.18pm AWST, White Cliff shares were down 3 per cent to 2.8 cents.
