White Cliff Minerals has agreed to sell its Great Bear Project in Canada for A$5.8 million, while announcing key board appointments to support its next growth phase.
- Sale of Great Bear Project to Hydrocarbon Dynamics Ltd for A$5.8 million
- In-specie distribution of 165 million shares to White Cliff shareholders
- White Cliff retains 9.9% stake in renamed Great Bear Exploration Ltd
- Appointment of Gavin Rezos as Non-Executive Chairperson and Sara Kelly as Non-Executive Director
- Retirement of Rod McIllree from White Cliff board to join Great Bear Exploration Ltd
Strategic Asset Sale
White Cliff Minerals Limited (ASX: WCN) has taken a decisive step to sharpen its focus on its flagship Rae Project by agreeing to sell its Great Bear Project in Canada. The transaction, valued at A$5.8 million, involves a cash payment of A$1.2 million and 230 million shares in Hydrocarbon Dynamics Ltd (ASX: HCD), which will be renamed Great Bear Exploration Ltd. This sale marks a significant milestone for White Cliff as it reallocates resources towards advancing its copper-silver exploration efforts at Rae.
Shareholder Value and Structure
Importantly, White Cliff plans to distribute 165 million of the consideration shares in specie to its shareholders, allowing them to maintain direct exposure to the Great Bear asset’s future development. Post-distribution, White Cliff will retain a 9.9% voting stake in Great Bear Exploration Ltd, preserving a meaningful interest in the project’s upside. The transaction is contingent on several approvals, including shareholder consent and ASX re-admission of HCD, introducing some execution risk but also potential for value creation.
Board Refresh to Drive Growth
Alongside the asset sale, White Cliff has announced key board changes designed to support its next growth phase. Gavin Rezos joins as Non-Executive Chairperson, bringing extensive capital markets and project development expertise, while Sara Kelly is appointed as Non-Executive Director, with proposed performance rights to align her interests with shareholder value creation. Meanwhile, long-serving director Rod McIllree retires from White Cliff to take an executive role at Great Bear Exploration Ltd, ensuring continuity for the divested project.
Funding Exploration at Rae
The proceeds from the sale will bolster White Cliff’s balance sheet and directly fund upcoming drilling programs at the Rae Project, which hosts promising copper and silver mineralisation. The company’s recent exploration has highlighted significant intercepts, underscoring Rae’s potential to deliver substantial value. This strategic refocus aims to position White Cliff for long-term growth in a competitive copper market.
Looking Ahead
While the transaction awaits final approvals, White Cliff’s move signals a clear intent to streamline its portfolio and sharpen its exploration focus. The in-specie distribution offers shareholders a balanced approach to risk and reward, maintaining exposure to Great Bear’s upside while backing Rae’s development. The new board appointments further reinforce the company’s commitment to disciplined growth and value creation.
Bottom Line?
White Cliff’s divestment and board renewal set the stage for a focused exploration push at Rae, with shareholder exposure to Great Bear preserved.
Questions in the middle?
- Will shareholder approvals and ASX re-admission of HCD proceed smoothly to complete the transaction?
- How will the market value the in-specie shares in Great Bear Exploration Ltd post-distribution?
- What are the expected timelines and targets for the upcoming Rae Project drilling campaign?