- Junior gold explorer West Wits Mining (WWI) has frozen its shares until next week as it prepares to launch a fresh capital raising plan
- The company has not yet revealed how much cash it plans to raise and at what price
- At the end of June, West Wits had enough funds in the bank to survive for just under three more financial quarters
- With first production from its Witwatersrand Basin project planned for before the end of the financial year, the upcoming capital raise may not be too surprising to investors,
- Shares in West Wits last traded yesterday afternoon for 2.6 cents each
Junior gold explorer West Wits Mining (WWI) has frozen its shares until next week as it prepares to launch a fresh capital raising plan.
The company has not revealed any details about the raise, including how much it plans to raise and at what price, but today's trading halt is expected to end next week Monday.
At the end of June, West Wits had $1.2 million cash in the bank after ending the quarter cashflow-negative by around $440,000. At this level of spending, the company had enough cash in the bank to survive for just under three financial quarters.
Interestingly, West Wits finished an oversubscribed capital raise just over a month ago, pulling in $800,000 through a share placement and purchase plan in late-June.
Still, with some clear near-term goals laid out in a recent investor presentation, the upcoming capital raise may not be too surprising to investors.
West Wits has three core projects: the Mt Cecelia and Tambina projects in Western Australia and the Witwatersrand Basin project in South Africa.
Before the end of the financial year, West Wits plans to land mining rights for its Witwatersrand project, complete a bankable feasibility study (BFS) in the area, and begin first production from the project. By 2024, West Wits plans to be producing between 50,000 and 60,000 ounces of gold from the project per year.
At Mt Cecelia, some upcoming aeromagnetic surveys are being planned to identify drill targets for 2021 drilling.
Infill drilling is also planned across West Wits' projects, with plans to receive new exploration rights in Africa and Australia over the second half of next year.
To hit all these goals, the company will likely need a bump to its balance sheet, hence the upcoming raise.
Shares in West Wits last traded for 2.6 cents each yesterday afternoon. The company has a $26.6 million market cap.