White Rock Minerals Ltd (ASX:WRM, OTCQX:WRMCF) has received acceptances for about $426,000 in an entitlement offer, resulting in over six million fully paid ordinary shares being issued today.
Encouragingly, the company received commitments to place another $850,000 and is in negotiations to place the remainder of the shortfall, which is about $3 million in total.
This is a pro-rata non-renounceable one-for-five entitlement offer of fully paid ordinary shares to raise around $3.45 million.
The primary aim WRM's 4.5-million capital raise program is to ramp up gold production at the Woods Point Gold Mine and gold processing facility in Victoria to full capacity.
Some funds will also be allocated to assess and prioritise the next exploration steps at the Red Mountain Project in Alaska.
Woods Point ramp up
White Rock executive director Simon Finnis said: “It is pleasing to see the support we received for the equity raising.
“With these funds, and those yet to be received, we will continue to focus on Woods Point ramp-up, and can also look to expand our knowledge by drilling in the upper areas of the mine.
“Concurrently, we will look at regional exploration with the priority being to identify additional near-term and proximal mining opportunities to feed into the processing plant at Woods Point.”
Entitlement offer
Under the entitlement offer, eligible shareholders were able to subscribe for one new share for every five existing fully paid ordinary shares held at 7.00 pm (AEDST) on December 15, 2022, at the offer price of $0.07 per share.
If fully subscribed, this offer will raise up to $3.45 million before costs.
Entitlements are non-renounceable and will not be tradeable on ASX or otherwise transferable.
Notably, WRM director Paul McNally accepted his full entitlement.
Furthermore, the board will seek shareholder approval at a general meeting of the company, planned to be held on January 31, 2023, to take up to $200,000 on the same terms as the placement.
Use of funds
Funds raised from the equity raising will be used for:
- continuing the ramp-up of the Woods Point Gold Mine and gold processing facility to full production;
- in-mine and regional exploration at the Woods Point Gold Project;
- a review of all geological data at Red Mountain;
- care and maintenance at the Red Mountain Project; and
- working capital and costs of the capital raise.