White Rock Minerals Ltd (ASX:WRM) has applied for an OTCQX cross listing of securities in North America following strong interest from North American investors in the company’s recent equity raising and its Red Mountain project.
This is part of White Rock’s strategy to focus on the high-grade zinc-silver-gold-lead VMS and IRGS project at Red Mountain in central Alaska, which includes the Last Chance prospect.
Tapping strong interest
White Rock said the move was encouraged by many of its new North American investors as a way to tap the strong interest being shown in what it is doing at Red Mountain where drilling is underway at the large gold anomaly at Last Chance.
The cross listing will allow easier access for North American Investors to trade in WRM’s securities listed on the Australian Stock Exchange under the codes of WRM (for shares) and WRMO (for options).
This move should also benefit existing Australian-based shareholders and potential investors as it opens up access to a very large gold and silver focused investment community in North America.
Top tier marketplace
OTCQX is the top tier of the three marketplaces provided by the OTC Markets Group Inc, headquartered in New York, for the over-the-counter trading of stocks.
The OTCQX market has high financial reporting standards and strong corporate governance requirements, both of which are satisfied through the company’s ongoing compliance with ASX listing rules.
It aims to provide current and potential North American investors with appropriate accessibility and liquidity to invest in the company.
The cross listing process is well underway through ongoing discussions with OTC and an application being made to FINRA (the US equivalent of ASIC).
White Rock has a corporate advisory group in New York providing guidance and has engaged a market maker/sponsor, which serves the same purpose as a broker in Australia.
Access to large investment market
The listing gives White Rock access to one of the largest investment markets in the world at nominal cost, with no additional compliance requirements, compared to traditional major exchanges.
Existing ordinary shares of White Rock will be traded on the OTCQX Market and North American investors will be able to find real-time quotes and market information on the OTC Markets website once the company is cross listed.
Three key advantages for North American investors are:
- Trades and settlements are in US Dollars;
- Trading in the North American time zone; and
- The OTCQX share is the same class of Ordinary Share to ASX traded stock (ASX:WRM), not a synthetic - the shares are simply registered in two different registries.
White Rock hopes to have the OTC ticker and be up and trading next month.