- West Wits Mining (WWI) receives commitments to raise $7 million to develop its Witwatersrand Basin Project (WBP) in South Africa
- The company will issue over 116.7 million shares at 6 cents which marks a 17.3 per cent discount to the five-day volume-weighted average price (VWAP)
- The placement also comes with one option for every two shares issued at a price of 12 cents each to be exercised within one year
- West Wits is eager to get activities underway at the WBP after being granted a 20-year mining right last month to kickstart development
- Company shares are down 7.25 per cent to trade at 6.4 cents
West Wits Mining (WWI) has received commitments to raise about $7 million through a share placement.
The company will issue sophisticated and professional investors 116,786,667 shares at 6 cents each. This marks a 17.3 per cent discount to the five-day volume-weighted average price (VWAP) of 7.25 cents and a 13 per cent discount to the last closing price on July 29 of 6.9 cents.
The placement comes with one option for every two shares issued at a price of 12 cents each to be exercised within one year.
PAC Partners Securities acted as the lead manager of the placement and will be issued with 11,678,666 broker options on the basis of one option for every 10 placement shares held. The broker options will be exercised with the same terms as the placement options.
West Wits Mining will use the money to conduct various activities at its Witwatersrand Basin Project (WBP) in South Africa.
Managing Director Jac van Heerden commented on the placement.
“The $7 million capital raise provides West Wits with the funding to rapidly advance the development program at the WBP towards production, made possible by the granting of the mining right at the WBP in July 2021.”
The placement follows the company being granted a 20-year mining right which allows it to kickstart development at the project.
Specifically, the money will be used for site establishment and infrastructure construction, underground development, exploration and a Main Reef definitive feasibility study.
Further, the funds will support ground exploration at the Mt Cecilia Project in Western Australia ahead of a maiden drilling program scheduled for next year.
Company shares were down 7.25 per cent to trade at 6.4 cents at 10:57 am AEST.