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White Cliff Minerals seeks to divest non-core assets as part of corporate restructure

Published: 15:18 06 Aug 2018 AEST

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Also focused on the Aucu Gold Project in the Kyrgyz Republic

White Cliff Minerals Ltd (ASX:WCN) will seek shareholder approval to consolidate its issued share structure on a 50:1 basis and will also seek to divest non-core assets.

In conjunction with the consolidation, the directors have agreed to cancel all outstanding performance incentives for no consideration.

Post-consolidation, White Cliff will focus on extracting value for its gold deposit in the Kyrgyz Republic and advancing selected Australian cobalt and nickel deposits to JORC compliant resources and ultimately operating mines.

READ: White Cliff Minerals assays additional cobalt and nickel at Coronation Dam

White Cliff is planning to focus on its cobalt and nickel projects located south-east of Laverton.

Although the projects are at early stages, the company believes each could potentially support a stand-alone development of a size and quality that could rival some similar projects being promoted by the leaders in the Australian cobalt-nickel sector.

The White Cliff projects benefit from being located close to Glencore’s (LON:GLEN) existing Murrin Murrin nickel-cobalt plant and GME Resources’ (ASX:GME) proposed Mt Kilkenny nickel-cobalt plant, which offers alternative development options.

READ: White Cliff Minerals upgrades gold and copper resources in the Kyrgyz Republic

White Cliff will also focus on extracting value from its 90%-owned Aucu Gold Project in the Kyrgyz Republic, which contains a gold resource of 484,000 ounces and a copper resource of 64,000 tonnes.

Recent geochemical sampling across the project porphyry area has revealed multiple significant gold-copper and base metals targets highlighting the potential of this mineralised system.

The company is actively seeking interested parties to assist with the development of the project; and/or to acquire the project outright.

Corporate restructure

Due to the company’s unwieldy issued capital structure and the granularity of changes in its share price at the current depressed prices, White Cliff has decided to seek shareholder approval to consolidate its issued shares on a 50:1 basis.

The company is also seeking to divest non-core assets including the Australian Gold assets and the Bremer range cobalt and nickel project via sale, joint venture or spin out.

In addition, White Cliff will endeavour to convert some existing debt into scrip.

A review of the composition and roles of the board of directors will also be undertaken.

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