White Rock Minerals (ASX:WRM) - CEO & Managing Director, Matthew Gill
CEO & Managing Director, Matthew Gill
Source: Matthew Gill/LinkedIn
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  • White Rock Minerals (WRM) is set to undertake an equity raising to raise approximately $11 million
  • The equity raising will consist of a placement and non-renounceable entitlement offer, raising $2.25 million and $9.1 million, respectively
  • Under the placement, more than 9.37 million shares will be offered at 24 cents while the entitlement offer will allow shareholders to subscribe for one share for every four held
  • White Rock will use the money to undertake exploration at its Woods Point Gold Project and recapitalise the Morning Star gold mine
  • Shares in White Rock are down 22.6 per cent on the market and are trading at 24 cents

White Rock Minerals (WRM) is set to undertake an equity raising to raise approximately $11 million.

The company entered a trading halt on December 2 but did not disclose how much it intended to raise or what it would be using the funds for.

The equity raising will consist of a placement and non-renounceable entitlement offer, raising $2.25 million and $9.1 million, respectively.

Under the placement, 9,375,000 new shares will be issued to certain institutional and sophisticated investors at 24 cents.

This price represents a 23 per cent discount to White Rock’s last trading price of 31 cents and a 25 per cent discount to the seven-day volume-weighted average price of 32 cents.

Shares under the placement are expected to be issued and allocated on December 10.

In regards to the entitlement offer, eligible shareholders will be able to subscribe for one new share for every four held as of December 13.

If applications are received for less than $9.1 million, White Rock Directors have the right to place the shortfall at their discretion.

Shareholders will also have the ability to apply for shares in excess of their entitlement that are now subscribed for by other shareholders under a top-up facility.

White Rock will use the money from the raise to undertake exploration activities at its Woods Point Gold Project and recapitalise the Morning Star gold mine and processing facility.

CEO and Managing Director Matt Gill commented on the equity raising.

“White Rock acquired the Woods Point Gold Project in August, and by October we had commenced diamond drilling at the high-grade Morning Star gold mine, with two diamond rigs now operating there,” Mr Gill said.

“Work has also commenced on planning our regional exploration program, with multiple highly prospective targets already identified across our extensive 660 square kilometre tenement package.”

“This capital raise will see White Rock continue this aggressive exploration focus on the significant in-mine and regional exploration potential of the project.”

Shares in White Rock were down 22.6 per cent on the market and were trading at 24 cents at 12:15 pm AEDT.

WRM by the numbers
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