White Rock Minerals (ASX:WRM) looks to raise $2.4m for Morning Star

• White Rock Minerals (WRM) announces capital raise of $2.4 million for its Morning Star gold mine in Victoria
• Under the raise, the company will issue one free attaching unlisted option for every two shares subscribed for 15 cents each, a 25 per cent discount to the last trading price
• WRM also intends to make a bonus offer of options to eligible shareholders on a one-for-two basis of shares held
• Funds raised will be used for pre-production development and commencement of gold production at Morning Star
• WRM shares dropped 25 per cent to 15 cents per share

White Rock Minerals has announced a placement of new shares to institutional and sophisticated shareholders, to raise $2.4 million.

The company says the capital raise will be used for recruitment, pre-production development and commencement of gold production at the Morning Star Gold Mine in Victoria, where two diamond rigs have tested multiple mineralised quarts reefs.

Managing Director Matt Gill said “at least three possible production areas” have been identified for potential mining. And the capital raise will allow the company to “become Victoria’s next gold producer”.

Subject to shareholder approval, White Rock will issue one free attaching unlisted option for every two shares subscribed for by participants, at an issue price of 15 cents per share.

The offer price is a 25 per cent discount to the last traded price of 20 cents per share.

Also subject to shareholder approval, White Rock said it intends to make a bonus offer of options to eligible shareholders on a one-for-two basis of shares held.

Then placement will be issued and allotted around 11 May, 2022.

WRM shares plunged 25 per cent lower, at 15 cents each at 1:03 pm AEST.