The funds will be used for development work at its Chanach Gold-Copper Project and its Coronation Dam and Ghan Well cobalt-nickel projects.
The company’s managing director Todd Hibberd has stepped down from his position, remaining a director until March 31, 2019, after which he will be engaged as a consultant.
Non-executive director Daniel Smith has taken on the role of chairman, however, his renumeration will remain the same.
White Cliff has also begun a strategic review of its projects, initiating discussions with various parties regarding joint ventures or outright sale its non-core Western Australian projects.
A global finance advisory firm has been appointed to evaluate options to unlock value as the company shifts its focus to the key projects of Chanach, Coronation Dam and Ghan Well.
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The entitlement offer is underwritten to the amount of $1 million by Perth-based CPS Capital Group Pty Ltd.
It will be open to all eligible shareholders with a registered address in Australia or New Zealand and who hold White Cliff shares at February 19.
One new share for every one White Cliff share held will be issued at a price of 0.5 cents and each new share will include one free-attaching option exercisable at 1.5 cents.
New shares are attractively priced at a 68% discount to the previous market close of 1.5 cents.
Unless extended, the entitlement offer will close on March 6 and will issue nearly 230.1 million new shares together with the same number of options.
Funds raised will go towards:
Completion of alluvial bulk sampling for better understanding of gold distribution at the Chanach project in Kyrgyzstan, which contains a resource of 3 million tonnes at 5.1 g/t gold for 484,000 ounces;
Metallurgical assessment of recoverable gold from Chanach’s alluvial system;
Conversion of the Chanach prospecting licence to an exploration licence, providing an additional four years of tenure;
Preparation of drilling access tracks and pads;
Maiden resource estimate for the Coronation Dam and Ghan Well cobalt-nickel projects; and
General working capital.
Last month White Cliff announced it had identified and implemented cost-saving measures that reduced fixed costs by about $500,000 per annum.
These included right-sizing the management and exploration team and rationalising and re-negotiating various administration expenditures.
White Cliff has identified additional savings that will be disclosed and implemented soon.