White Cliff Minerals Ltd (ASX:WCN) has raised more than $2.3 million in a rights offer and is now debt free as it advances a gold project in the Kyrgyz Republic and a cobalt-nickel project in Western Australia.
The renounceable entitlements offer will result in the issue of almost 154 million shares and an equal number of options.
Applications were received totalling almost $1.109 million with the remaining shortfall of more than $1.2 million to be placed by the underwriter, CPS Capital Group Pty Ltd.
White Cliff’s managing director Todd Hibberd said, “The company is very pleased with the strong response to the rights offer and is now debt free.
“We are working to advance the Aucu Gold Project where the focus is on adding further resources and the Coronation Dam Cobalt-Nickel Project where the company will calculate a maiden resource.”
READ: White Cliff Minerals’ rights issue raising up to $2.3 million for Asian and Australian projects
The company has been advised by CPS Capital Group that it has received commitments from its clients to place all the shortfall shares.
The allocation of shortfall shares is expected to occur at the same time as rights issue acceptances are allocated.
As well as work at Aucu and Coronation Dam, funds will be used to repay debt and for general working capital.
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At Aucu, White Cliff intends to drill to define further gold to add to the resource of 3 million tonnes at 5.1 g/t for 484,000 ounces from surface.
The company will also carry out pre-development studies including metallurgy, environmental, economic and licence conversion.
Funds will also be allocated to define a resource and for preliminary metallurgical test work at the Coronation Dam project.