Several junior explorers are rattling the tin to fund exploration programs, including White Cliff Minerals (ASX:WCN), which is raising $5 million via a placement.
The company is raising funds for exploration across its Rae Copper and Great Bear projects in Canada, with drilling programs to begin at Rae in Q1 2025. Drilling will then follow mid-season next year at Great Bear.
CPS Capital Group has been retained as lead manager to the equity raise.
White Cliff, which has a market capitalisation of $39.1 million, is conducting a share placement to new and existing investors — with strategic advisor John Hancock contributing $2.5 million of the $5 million in a cornerstone investment.
Hancock had introduced numerous high-net-worth investors and international funds from the UK and US to White Cliff Minerals.
Under the placement, 200 million shares will be issued at $0.025 per share, representing a 4% premium to the last closing price and a 8.5% premium to the 15-day volume weighted average price (VWAP).
White Cliff says investors will receive one free-attaching unlisted option for every four shares subscribed for, exercisable at $0.04 each on or before three years from the date of issue.
The shares are expected to be settled on 15 October, while the allotment of shares and options will occur the following day.
Gold-focused explorer Vertex Minerals (ASX:VTX) is also conducting a placement and convertible loan financing to raise up to $2.1 million at $0.16 per share.
The funds will be applied towards acquiring an ore sorter and any associated conveyance equipment, as well as the purchase of an underground drill rig.
The placement will comprise the issue of up to 6.9 million shares at $0.16 per share. Subject to shareholder approval, participants will receive three free-attaching options for every five shares held.
Vertex Minerals says the options will have the same terms as existing options, which have an exercise price of $0.025 per share and an expiry date of 17 July 2026.
In parallel, loan funds are expected to be $976,000 and the company intends to seek approval for conversion of the loan at the next annual general meeting on 29 November 2024.
Once shareholder approval is secured, loan funds will be converted into ordinary Vertex shares at a conversion price of $0.16 per share, with two free-attaching options for every five shares issued on conversion.
CPS Capital Group acted as lead manager to the capital raising.
Further, Australia-based explorer Zenith Minerals (ASX:ZNC) is conducting a placement to raise $1.44 million to fund drilling at the Dulcie Far North prospect and Red Mountain Project.
The Red Mountain Project is prospective for gold and lies in central Queensland, while Dulcie Far North is part of the Split Rocks Gold Project which lies in Western Australia.
Under the placement, 32 million shares will be issued at $0.045 per share, representing a 2.2% discount to the last closing price of $0.046.
Once the placement is completed, Zenith Minerals will also undertake a share purchase plan (SPP) to raise an additional $500,000.
Eligible shareholders will be able to subscribe for up to $30,000 worth of shares.
Zenith Minerals aims to expand existing resources within Red Mountain and Dulcie Far North, as well as unlock new potential. Funds will also be used for general working capital purposes.
Write to Aaliyah Rogan at Mining.com.au
Images: White Cliff Minerals
