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White Cliff Minerals Set To Raise Funds From Share Purchase Plan

White Cliff Minerals (ASX: WCN) has launched a share purchase plan (SPP) offering shareholders up to $15,000 of shares at $0.009 each to raise up to $502,000.

In total 55.8 million shares will be offered, and in the event of a shortfall, it may be placed to professional and sophisticated investors at the discretion of the directors, subject to shareholder approval of the placement.

The offer price represents a 21.1% discount to the volume weighted average price of the company's shares on the ASX during the 5 trading days immediately prior to the announcement date of the SPP Offer.

White Cliff had recently completed the first tranche of its oversubscribed $1.2 million placement to begin further exploration at Chanach.

The funds will be used for trenching and drilling at the high grade Chanach Copper Gold project in Kyrgyz Republic.

Proceeds will also be used for exploration at the Lake Johnston nickel-copper project in Western Australia where drilling is scheduled to commence in April 2014 and Exploration at the Merolia nickel and copper project in Western Australia.

Additional free options

In addition to the SPP Offer, the company intends to offer one free unlisted option for every two new shares issued - including any investors in the shortfall. The options are exercisable at $0.03 each and have an expiry date of 11 March 2017.

The company intends to offer these free options by way of a prospectus to be issued shortly after the SPP Offer closes, which will be sent to each shareholder who accepts the SPP Offer and to each investor who subscribes for the shortfall.

Chanach Copper Gold Project

Chanach is a porphyry copperā€gold prospect located within 100 kilometres of 93 million ounces of gold resources and 25 million tonnes of contained copper that are hosted in seven separate resources within the highly mineralised Tien Shan Belt that extends for over 2,500 kilometres from Western Uzbekistan to western China.

It covers 83 square kilometres and is located 350 kilometres southwest of the capital Bishkek. also has good road access and is close to regional mining support hubs.

Drilling at the Chanach Deposit had returned 10 metres at 1.01% copper and 14 metres at 0.77% copper while trenching at Aucu had intersections of 7 metres grading 3.83% copper and 30.1 grams per tonne gold and 10 metres at 1.73% copper.

White Cliff currently owns a 57% interest and has an option to increase that to 89.2% by purchase of the minority 32.2% interest held by T2 Gold Pty Ltd.

Analysis

Having already raised $1.2 million from its oversubscribed placement to sophisticated investors, the share purchase plan to raise up to a further $502,000 will assist to fund trenching and drilling of the Aucu copper-gold discovery at Chanach that will begin this month.

The project holds promise to host multiple large scale copper-gold resources and there is a pipeline of news flow and share price catalysts coming up this year. It is the potential for significant discoveries at Chanach, Lake Johnston and Merolia that provides the "juice" for White Cliffs.

Against its current market cap. of circa $1.9 million, the company's share price is primed on even a hint of exploration success at one of these in 2014.

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