People - good close yesterday on solid volume. Wait until the wider investment community sees these robust project numbers 103% IRR is outstanding
Exciting times for WRM - the main takeaway from the "Next mining boom" article. Financing to Production, (without shareholder dilution ; a Key factor for project success!
Clear path to production
With $5.5M in equity in the process of being placed, and $19M available for non-dilutive future funding, WRM is overcoming one of the largest hurdles that a small cap stock can face: financing to production.
The path to bringing the Mt Carrington gold and silver project through to production is clear and simple:
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As you can see above, WRM intends to be producing gold at Mt Carrington by 2019, with its DFS and Permitting due within 18 months helped by the approximately $20M worth of infrastructure already in place at the project.
Whilst getting Mt Carrington into a revenue generating mine position will be the main focus, exploration works at Red Mountain could also offer significant value add in the long term.
Historical drilling in the mining friendly jurisdiction of Alaska has seen impressive results returned, hinting that there may be plenty of polymetallic resources to be found in the ground.
WRM will continue to progress its projects in the coming months and as news flow is released, we would expect that the market could begin to factor in the progress and discover WRM for themselves…
White Rock Minerals (ASX:WRM) is a minerals exploration company with projects located in northern NSW and central Alaska in the US.
WRM’s key project is Mt Carrington, which sits in a collapsed volcano located 4 hours’ drive south of Brisbane.
It contains 338,000 ounces of gold and 23.4 million ounces of silver and WRM is quietly edging it towards production.
Early economics carried out on the Mt Carrington project show that there is significant upside on offer, particularly as this project has strategic finance backing in the form of a gold stream financing term sheet from New York based Cartesian Royalty Holdings.
The deal with Cartesian involves two phases, the first is an equity investment of $1M in two equal tranches (the first has been completed), the second phase involves streaming financing to the tune of US$19M over a 12 month period, in return for a share of gold and silver production. This will allow the funding of construction and commissioning of the Mt Carrington project.
Recently WRM successfully completed a placement which raised $1.65M, and further to that, was able to raise $744k under an entitlement offer which was undertaken at $0.015 per share.
A shortfall of 228 million shares was left over, which WRM Directors reserve the right to place any or all of over the coming three months.
While WRM works diligently towards bringing Mt Carrington to production, it also has another project in play.
It may be cold in Alaska, but WRM is hoping basic exploration work taking place at WRM’s Red Mountain project will eventually heat up. Red Mountain is an early stage exploration play located in an area historically known to contain zinc and silver deposits.
The Alaskan project is a future value add to the company’s main Mt Carrington project, and WRM sees significant discovery potential given the lack of modern day exploration previously conducted.
But for now, all eyes are on Mt Carrington.
Given that Mt Carrington is a development play heading toward production, WRM is hoping that it can match the performance of several of its gold development peers. As you can see by the chart below, WRM has some catching up to do, but believes it has the project and just as importantly, the project economics to facilitate growth in its $8M market cap:
; a Key factor for project success!
