West Wits Mining has received firm commitments to raise approximately $14m before costs via a placement to existing and new sophisticated and professional investors.
Highlights
- Firm commitments received from existing and new sophisticated and professional investors to raise approximately A$14m (before costs) at A$0.022 per share
- Every two shares are to be accompanied by one free-attaching option ($0.0385 exercise price and expiring 2 years from the date of issue). The issue of options is subject to shareholder approval
- Agreement reached to buy-back 10% of West Wits (SA) (Pty) Ltd (WW SA) and increase the Company’s interest to 74% of the Witwatersrand Basin Project (WBP)
West Wits Chairman, Michael Quinert said: “This fundraising enables West Wits to commence the exciting process of bringing Qala Shallows into production. We start this journey in an ideal environment for gold producers, whose ranks we are now joining. The fact that we will also be significantly increasing our stake in the overall project at this time is an added bonus.”
West Wits has secured firm commitments to raise $14,358,000 before costs through a share placement to existing and new sophisticated and professional investors.
The Placement is a capital initiative by WWI to strengthen the Company’s balance sheet, increase its effective holding in the WBP and fund commencement of operations at the Qala Shallows gold project being phase 1 of the broader WBP. These funds will enable:
- Commencement of the Company’s Qala Shallows gold project;
- Feasibility study review and optimisation;
- Fund US$5m for the buy-back of the 10% minority interest in WW SA which will increase the Company’s ownership of the WBP from 66.6% to 74%. An agreement for the buy-back has been executed; and
- General working capital and corporate costs.
