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White Cliff Minerals (ASX:WCN) significantly expands WA portfolio

ASX News, Mining
ASX:WCN      MCAP $22.74M
23 November 2021 12:25 (AEST)
White Cliff Minerals (ASX:WCN) - Technical Director, Ed Mead

Source: Artemis Resources

White Cliff Minerals (WCN) is set to acquire Western Australian explorers Magnet Resource Company and Preston River Lithium.

The acquisition will see White Cliff become the owner of eight lithium and rare earth element (REE) projects which cover a combined area of 1075.7 square kilometres and are all located in WA.

Magnet’s projects include Injuni Hills, Weedarra, Wabli Creek, Sandy Creek, Gardner Range, Rat Hill and Hines Hill, with the application of Hines Hill requiring an expenditure commitment of $44,000.

Through the acquisition of Preston, WCN will become the owner of its Preston River project which covers 145.7 square kilometres.

“The proposed acquisition of Magnet and Preston River is complementary to the company’s own tenement applications and validates White Cliff’s internal project generation, which targeted the right geological terrane, large land packages, and limited historical exploration,” White Cliff’s Technical Director Ed Mead said.

Upon signing the acquisition deal, White Cliff will pay $25,000 in cash and $75,000 when the acquisition is completed. The company will also issue 50 million shares and 50 million options exercisable at 3.5 cents expiring on June 30 2023. The acquisition terms also include two milestone payments.

In addition to these acquisitions, White Cliff Minerals applied for another two projects which cover roughly 3000 square kilometres.

The Diemals lithium and REE project is known to contain cerium valued at up to 1860 parts per million (ppm) and the Yinnetharra lithium and REE project also holds potential for uranium mineralisation.

“We believe that the company has an emerging project portfolio for critical metals,
which is targeting the world’s transition to net zero carbon by the middle of the century,” Mr Mead added.

“I am excited about the company’s project potential and look forward to on ground exploration in coming months.”

Combined with its own tenements, White Cliff will hold over 4000 square kilometres of highly prospective lithium and rare earth tenure in WA.

Following this news, WCN entered a trading halt regarding a capital raise with details expected to be released on Thursday, November 25.

Shares last traded at 1.2 cents on November 22.

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