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WCN - White Cliff Minerals

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The recent market correction along with an absence of news in the last month has caused the WCN share price to fall back to 2.1c. However, the WCNOE options started moving yesterday and are up a little more today.

Management needs to keep the news flow coming. WCN market cap is just $13.72 million. Lots of scope to grow that if they can advance their REE and lithium projects.
 
WCN up 36% today after announcing that REE were detected (up to 7800 ppm TREO) in rock chip samples from the Yinnetharra REE/Li project.

Results from a geochemical sampling program completed earlier this month are due in the next 2 to 3 weeks.

Not sure where WCN is going but with a marketr cap of ~8 million, it could move quickly either way.

 
...What will the capital raising be at?

....rock chip samples... Wake me when there's some drill holes showing a cross section.

Investment in tiny market caps does have its advantages at times I still find people who can't connect the share price to the market cap.
 

I like small caps, but they are difficult to value and very risky. Backing a small cap is like betting red or black on roulette. You could double your money or do your dough, but at least it's exciting.

When I posted earlier today WCN was 1.8c. It got as high as 2.7c around 15 minutes before the close eventually finishing up at 2c. So WCN was a bit of a rollercoaster today, up and down throughout the day. The market can't seem to come to any consensus about what today's announcement means.

Regarding the capital raising I have no idea. In the June 2022 Quarterly Reports, the company said the following regarding its cash position.

Cash Position

The Company’s cash position including listed investments as at 30 June 2022 was approximately $0.9 million. The Company retains sufficient funding to carry out its planned activities over the coming quarters.
Click to expand...

They got a little more specific a bit later on.



So two quarters of cash left as of 30 June. They will be looking to raise capital next quarter at the latest.
 
Still pumping...

Release of Securities from Escrow

Securities
50,000,000 ordinary shares

Escrow Period Expiry
28 August 2022

 
... But what will the end of year accounts show for liabilities? Quarterly reports only show half the equation.

... Just like clockwork..trading halt pending capital raising announcement...

Look at the sample numbers. Why is there such a gap in the results that they presented to the market??

frugal.rock said:
Still pumping...

Release of Securities from Escrow

Securities
50,000,000 ordinary shares

Escrow Period Expiry
28 August 2022

View attachment 146129
Click to expand...
Never! That doesn't happen on the ASX.
 

It's holding up OK though. The capital raise went through without any hiccups and it is trading well above the 1.8c the $1.7 million was raised at. Currently at 2.6c, up 13% on the day.

I have no idea about the end of year accounts liabilities, but we will find out soon enough.

Looking at the WCN chart objectively, it is looking bullish. The share price has doubled in the last couple of weeks. I'm not looking at WCN with rose coloured glasses but the short term trend is up. Although I concede that could change at any moment.

Management need to start kicking some goals on the exploration front. They now have a reasonable amount of working capital. They should use it wisely and deliver some results. Lithium is still hot but the clock is ticking. Get that drill bit working.
 
WCN have sold their Yinnetharra REE/Li Project to Minerals 260 Ltd for $2.445 million and are reviewing other projects for possible divestment. Management's strategy at the moment seems to be to raise capital by selling assets rather than issuing more shares and given the current share price that's not a bad idea.

I hope they use the cash to push at least one of the other projects forward. WCN needs more focus. I hope management start putting in the hard yards to get the company back on the right track.


 
WCN currently in a trading halt "pending the release of an announcement by the Company relating to a material acquisition of exploration projects."

Interesting. Looks like WCN may be putting some or all of the cash they pocketed from the sale of the Yinnetharra REE/Li Project into new exploration projects. They will really need to pull something impressive out of the bag here to restore some confidence in the company after the last nine months. 2.75c to 0.7c is a pretty ugly performance.
 
Of course,

"Large Scale Uranium Project Secured in Canada" announced this morning.



Hmmm, I now find this stock in 3 of my watchlists.
Uranium, lithium and Rare earths. Interesting.
Not held.
 
WCN is my pick for the Feb comp.

They are focusing on their Canadian tenements, copper and now also Uranium with their newly acquired Radium Pt asset.

The Australian tenements are probably out the door.

Importantly, the MD has worked in the Arctic circle previously so is no stranger to the cold.

The Eldorado mine(Radium Pt) closed in the early 80's so it is the well worn path of exploring around previous mining centres.

Just need the U price to get a 2nd wind and then a few high grade rock chip samples to be announced,

There are a few presentations on the WCN website for anyone interested.
 
WCNOE options, exercisable at 1.5c, expire at the end of February. Holders may actually decide to turn them into FPO shares if WCN sees some bullish share price movement in February.
 
Interesting, Director Daniel Smith has just picked up 20 million WCN shares, through a combination of an on-market purchase and the exercise of options WCNOE and WCNO.

Management will be working very hard to get WCNOE further into the money over the next couple of weeks. If holders exercise these options it will give the company a handy cash boost at a critical time. If I was a betting man I would be expecting an announcement soon.
 
March pick.

Expecting a rebound in U price and WCN to start pushing ahead with their Canadian prospects as the northern winter retreats.

There is also yesterday’s announcement, the boss has bought $500k of shares himself.

Any ASX minnow that has this commitment from any of their Executives has to be worth another shot in the comp.
 
Some nice rock chips and pow! Capital Raise! LOL

 
The rock chips really could be anything, like nothing, but good to see John putting some play money behind it.

 
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