Listed resources junior WA Kaolin was asking investors to chip...

Listed resources junior WA Kaolin was asking investors to chip in for its Wickepin plant, saying its offtake partner Stanco International Corp would also cut a cheque.

Street Talk. iStock

WA Kaolin was after $6 million, split as a $5 million placement at 15¢ a share and a $1.5 million share purchase plan. The offer price was an 11.8 per cent discount to the last close.

The term sheet sent to potential investors said its offtake partner and shareholder Stanco International Corp would tip in $1.5 million, and executive director Alf Baker and chief executive officer Andrew Sorensen would take $1 million via a converting loan subject to shareholder approval.

Its project Wickepin was discovered by Rio Tinto in 1980s and acquired by WA Kaolin in 1999, according to the term sheet. The proceeds would provide general working capital to support ramp up to full stage 1 capacity and fund modular increases to Stage 2 capacity, it said.

Canaccord Genuity was the sole lead manager and called for bids by 5pm Friday. The company had a $56.6 million market capitalisation before the raise.