- Gold explorer West Wits Mining (WWI) has received firm commitments to raise $650,000 through a share placement and hopes to raise another $150,000 through a share purchase plan
- The placement will issue 65 million shares at 1 cent each
- Under the share purchase plan, eligible shareholders will each be able to apply for up to $30,000 worth of shares, at the same offer price as the placement
- Funds from the raise will go towards mining licence applications and exploration and studies at the Witwatersrand Basin Project in South Africa
- West Wits is up 9.09 per cent on the market today, trading for 1.2 cents each
Gold explorer West Wits Mining (WWI) has announced it will raise up to $800,000 to strengthen its balance sheet and fund operations.
West Wits has received firm commitments for a $650,000 share placement and hopes to raise a further $150,000 through a share purchase plan (SPP).
The placement will issue 65 million shares at 1 cent each to raise $650,000. Under the SPP, eligible shareholders will be able to apply for shares to raise up to $150,000. The offer price is the same as for the share placement.
The issue price for the raise represents a 9.1 per cent discount on the last closing price on May 27 of 1.1 cents each.
If there is a shortfall under the SPP, West Wits will make some or all of the shortfall shares available to sophisticated, professional or other exempt shareholders.
Funds from the raise will go towards mining licence application expenses and exploration, and studies at the Witwatersrand Basin Project in South Africa.
“I’m delighted West Wits received such strong interest in raising these funds which will underpin the execution of the Board’s development strategy towards production at the Witwatersrand Basin Project,” Managing Director Jac van Heerden said.
“The support from both existing and new investors signals the strength of the underlying value of the Witwatersrand and provides validation of our strategy to production. The funds will enable the company to progress feasibility work and license applications,” he added.
West Wits Mining has been monitoring the COVID-19 restrictions in Australia and South Africa.
South Africa went into lockdown on March 27 and prior to this lockdown, the Department of Mineral Resources (DMR) wanted proof of guaranteed security for the rehabilitation of the mine.
The company obtained the information needed by DMR and told the department that the rehab guarantee was available for processing on April 17.
The South African Government recently announced the country is will further relax its lockdown restrictions from June 1 (yesterday). This will allow DMR officials to return to the office, however, office movements may still apply.
“This return to the workplace will enable the West Wits management team to now fully engage with DMR officials to progress the environmental approval and other aspects of the mining right application,” the company said.
West Wits is up 9.09 per cent on the market today, trading for 1.2 cents each at 12:34. pm AEST.