White Cliff Minerals' stock rose sharply on Tuesday after the junior explorer revealed a placement subscription from Hancock Prospecting that would inject A$8.8 million into the company.
The shares climbed 8.8% to A$0.019 following the announcement that Hancock Prospecting will subscribe for about 515.8 million new White Cliff shares at A$0.017 apiece. If completed and approved by shareholders, the transaction would give Hancock a 13.5% holding in the company.
The placement is conditional on shareholder approval at a general meeting scheduled for mid-October. Completion is therefore dependent on the outcome of that vote.
White Cliff said the funds will be directed to an expanded and accelerated drilling campaign at its Rae Copper Project in Nunavut, Canada. The work program as described by the company includes resource definition drilling at the Danvers 1 discovery, step-out drilling at Danvers 2 and 3, and follow-up activities at other regional targets.
Managing Director Troy Whittaker called the Hancock investment "a major milestone for White Cliff and powerful third-party validation of what we are building at Rae," and noted that copper prices at record highs and tightening global supply make the timing particularly compelling.
Market reaction to the deal was immediate but mixed intraday. White Cliff shares hit a session peak of A$0.022 - the highest intraday level since mid-June - before pulling back toward A$0.019. The stock's advance outpaced the broader Australian market, where the ASX 200 fell 0.9% on the session.
What the placement involves
- Subscriber: Hancock Prospecting, the private mining company run by Gina Rinehart.
- Size: Approximately 515.8 million new shares at A$0.017 each.
- Value: A$8.8 million placement that would represent a 13.5% stake, subject to shareholder approval.
The company framed the capital as enabling a step-up in activity at Rae, with a focus on defining resources at Danvers 1 and pursuing step-out holes at Danvers 2 and 3, along with regional follow-up work.
Shares of White Cliff traded higher on the news but experienced intraday fluctuation as the market digested the placement alongside a weaker ASX 200.