White Cliff Minerals (ASX:WCN) said Hancock Prospecting agreed to acquire a 13.5% stake in the company through the purchase of about 515.8 million new shares at AU$0.017 each, representing a total investment of roughly AU$8.8 million, according to a Tuesday filing with the Australian bourse.
Mining magnate Gina Rinehart is the executive chair of Hancock Prospecting.
The private placement is subject to shareholder approval, which White Cliff Minerals will seek at an extraordinary general meeting planned for Oct. 19.
If approval is obtained, the completion of the placement is expected three business days after the meeting, per the filing.
White Cliff Minerals said it will use the proceeds to expand and fast-track drilling and exploration activities at its Rae copper project in Canada.