White Rock Minerals is set to raise funds to pursue exploration activities at the recently acquired Woods Point Gold Project in Victoria, Australia.

The company will raise around $8m (A$11.3m) through a share placement and non-renounceable entitlement offer.

According to a statement, White Rock will issue around 9.375 million shares to institutional and sophisticated investors at the price of A$0.24. This will raise around $1.6m (A$2.25m).

Under the entitlement offer, eligible shareholders can subscribe one new share for every four existing fully paid ordinary share. The company aims to raise up to $6.47m (A$9.1m) before costs through this initiative.

White Rock will use the proceeds for in-mine and regional exploration at Woods Point Gold Project. A portion of the funding will also be used for recapitalisation of the Morning Star gold mine and gold processing facility and support maintenance works of the mine.

The company also intends to use it as working capital.

White Rock added the Woods Point Gold Project to its portfolio through a merger with AuStar Gold in August 2021.

White Rock MD and CEO Matt Gill said: “White Rock acquired the Woods Point Gold Project in August, and by October we had commenced diamond drilling at the high-grade Morning Star gold mine, with two diamond rigs now operating there.

“Work has also commenced on planning our regional exploration programme, with multiple highly prospective targets already identified across our extensive 660km² tenement package.”

“This capital raise will see White Rock continue this aggressive exploration focus on the significant in-mine and regional exploration potential of the project.”