JOHANNESBURG (miningweekly.com) – Minerals explorer White Rock is seeking to raise $5.74-million through the placement of shares and an entitlement offer to fund studies and exploration at projects in New South Wales and in Alaska.
The company will raise $1.62-million in a placement of ordinary shares to investors and up to $4.12-million in an one-for-two nonrenounceable entitlement offer of shares to existing eligible shareholders at an offer price of 1.5c a share.
The funds raised will be used to fund the definitive feasibility study (DFS), the environmental-impact assessment (EIS) and associated approvals for the Mt Carrington gold/silver project in New South Wales, as well as for exploration activities at the Red Mountain zinc/silver project in Alaska.
“This equity raising is a game-changer for White Rock. With this equity raising, White Rock will be able to advance the current scoping study to DFS level and progress the necessary permitting through completion and submission of its EIS,” said MD and CEO Matt Gill on Wednesday.
Once these activities are completed, White Rock expects the proposed $19-million financing package offered by Cartesian Royalty to unlock the full potential of the Mt Carrington project, which has a resource base of 338 000 oz of gold and 23.4-million ounces of silver.
Gill said the project was supported by existing infrastructure and provided strong financial returns over an initial seven-year mine life.
“This equity raising should also allow White Rock to advance its highly prospective silver VMS project in Alaska, where some 30 high-priority conductors have been identified from initial geochemistry and geophysics work; this in conjunction with the two known deposits already identified at Dry Creek and West Tundra Flats,” he added.