West Wits Mining (ASX:WWI) has received firm commitments to raise $2.5 million via a share placement to existing and new unrelated sophisticated and professional investors.
The capital raise designed is to strengthen the company’s balance sheet and fund its ongoing operations to develop the 4.28Moz Witwatersrand Basin Gold Project in South Africa.
This includes maintaining operational readiness at the Witwatersrand Basin Project’s (WBP) Qala Shallows deposit to enable ramp up of development; completing phase one’s drillhole program as part of the WBP’s three-phase uranium exploration program; and for general working capital.
Far East Capital and Viriathus Capital acted as the joint lead managers to the placement, with bids so far received significantly above the targeted $2 million.
“Securing this $2.5M placement at a time when there is global market uncertainty is a great result”
Commenting on the capital raise, Managing Director Jac van Heerden stated: “Securing this $2.5M placement at a time when there is global market uncertainty is a great result for West Wits, as we maintain operational readiness at Qala Shallow to move into production, whilst concurrently carrying out Phase 1 of our exciting uranium exploration program at the wider WBP.
We continue to progress our negotiations regarding a long-term toll processing agreement for our future gold production and we look forward to being able to update the market on this in due course.”
Under the placement, almost 138.9 million fully paid ordinary shares will be issued at $0.018 per share. The issue price represents a 15% discount to the 15-day volume weighted average price (VWAP) of $0.0212.
The placement is being made to new and existing unrelated sophisticated and professional investors who are clients of the joint lead managers or who the company has identified as part of its investor relations activities.
The placement is being made without the need to issue a prospectus or obtain shareholder approval.
The Witwatersrand Basin Project is located some 15km west of Johannesburg, Gauteng Province, South Africa. The basin comprises a thick sequence of rocks known as Witwatersrand Supergroup, which consists of the lower West Rand Group and the upper Central Rand Group.
Images: West Wits Mining Ltd
