PARTIALLY UNDERWRITTEN RIGHTS OFFER AND PLACEMENT MANDATE
The Rights Offer is underwritten to the amount of $1 million by Sydney-based Gleneagle Securities Nominees Pty Ltd ("Gleneagle") and will be available to White Cliff Shareholders registered at 5.00pm WST on 9 August 2017.
In addition, the Company has entered into a "best endeavours" placement mandate for Gleneagle to raise up to a further $1 million by the placement of up to 500,000,000 additional New Shares in the Company at an issue price of $0.002 per New Share (Placement).
The funds raised by the Rights Offer and proposed Placement will be used primarily for:
- drilling of the Company's flagship Aucu gold project in the Kyrgyz Republic and associated exploration costs;
- drilling of selected gold targets within the Company's Western Australian gold project tenement package;
- general working capital; and
- pursuing a dual listing of the Company's ordinary shares on the UK AIM market.
All New Shares issued will rank equally with existing Shares on issue and the Company will apply for official quotation of the New Shares. A prospectus in relation to the Rights Offer will be lodged with ASIC shortly. Option holders are not entitled to participate in the Rights Offer without first exercising their options to be registered as a Shareholder in Australia or New Zealand, in accordance with the terms and conditions of the options.
White Cliff Managing Director Todd Hibberd said: "The recent drop in the Company's share price has been disappointing for all shareholders and has occurred despite our 2016 drill program almost doubling the Aucu project gold resource to 302,000 ounces at 5.2g/t. By undertaking a rights issue, all existing shareholders will be given the opportunity to acquire New Shares at the same price that the Company is seeking to raise additional funds from new professional investors. If the maximum funds are raised from both the rights issue and placement, the Company will be securely funded through to 2018 such that its primary focus can be on adding resource ounces at Aucu."
The following are indicative dates in respect of the Rights Offer:
Event: Announcement of Rights Offer
Date: 3 August 2017
Event: Prospectus lodged with ASIC and ASX
Date: 4 August 2017
Event: Notice of Rights Offer sent to Shareholders
Date: 7 August 2017
Event: Ex-date (date from which Shares begin trading without the entitlement to participate in the Rights Offer)
Date: 8 August 2017
Event: Record Date (to identify Shareholders entitled to participate in Rights Offer)
Date: 9 August 2017
Event: Prospectus and Entitlement and Acceptance Forms sent to Eligible Shareholders
Date: 11 August 2017
Event: Last day to extend the Closing Date
Date: 22 August 2017
Event: Rights Offer Closes (Closing Date)
Date: 25 August 2017
Event: New Shares quoted on a deferred settlement basis
Date: 28 August 2017
Event: Notice to ASX of shortfall
Date: 30 August 2017
Event: New Shares issued
Date: 1 September 2017
Event: Normal trading of New Shares on ASX commences
Date: 4 September 2017
The above dates are indicative only and may be subject to change. The Directors may vary these dates subject to any applicable requirements of the Corporations Act or the Listing Rules.
An Appendix 3B New Issue Announcement is attached (see the link below) in relation to the New Shares to be offered under both the Rights Offer and proposed Placement.
To view the Appendix 3B New Issue Announcement, please visit:
About White Cliff Minerals Ltd
Kyrgyz Aucu Gold Project (90%): The Project contains extensive porphyry related gold and copper mineralisation starting at the surface and extending over several kilometres. Drilling during 2014-6 has defined a gold deposit currently containing an inferred resource of 1.8Mt at 5.2 g/t containing 302,000 ounces of gold and 608,000 tonnes at 0.64% copper containing 3870 tonnes of copper. Drilling has also defined a significant copper deposit at surface consisting of 10Mt at 0.41% copper containing 41,000 tonnes of copper.
Extensive mineralisation occurs around both deposits demonstrating significant expansion potential. The project is located in the Kyrgyz Republic, 350km west-southwest of the capital city of Bishkek and covers 57 square kilometres. The Chanach project is located in the western part of the Tien Shan Belt, a highly mineralised zone that extending for over 2500 km, from western Uzbekistan, through Tajikistan, Kyrgyz Republic and southern Kazakhstan to western China.
Merolia Gold and Nickel Project (100%): The project consists of 771 square kilometres of the Merolia Greenstone belt and contains extensive ultramafic sequences including the Diorite Hill layered ultramafic complex, the Rotorua ultramafic complex, the Coglia ultramafic complex and a 51 kilometre long zone of extrusive ultramafic lavas. The intrusive complexes are prospective for nickel-copper sulphide accumulations possibly with platinum group elements, and the extrusive ultramafic rocks are prospective for nickel sulphide and nickel-cobalt accumulations.
The project also contains extensive basalt sequences that are prospective for gold mineralisation including the Ironstone prospect where historical drilling has identified 24m at 8.6g/t gold. Soil sampling in 2016 has identified multiple mineralised gold trends at Burtville East, Comet Well and Ironstone which will be drilled in 2017.
Bremer Range Nickel Project (100%): The project covers over 127 square kilometres in the Lake Johnson Greenstone Belt, which contains the Emily Ann and Maggie Hayes nickel sulphide deposits. These mines have a total resource of approximately 140,000 tonnes of contained nickel. The project area has excellent prospectivity for both komatiite associated nickel-cobalt sulphides and amphibolite facies high-grade gold mineralisation.
Lake Percy Lithium Project (100%): Substantial lithium anomalism has been identified within untested outcropping pegmatites within the Lake Percy tenements.
Laverton Gold Project (100%): The project consists of 136 square kilometres of tenement applications in the Laverton Greenstone belt. The core prospects are Kelly Well and Eight Mile Well located 20km southwest of Laverton in the core of the structurally complex Laverton Tectonic zone immediately north of the Granny Smith Gold Mine (3 MOz) and 7 kilometres north of the Wallaby Gold Mine (7MOz).
White Cliff Minerals Ltd