West Wits Mining (ASX: WWI) has signed an agreement to acquire the Derewo River Gold project, located in Indonesia, from Paniai Gold.
Consideration for the deal is all scrip and includes; 80 million shares, 46 million performance shares subject to Derewo producing 20,000 ounces of gold within 2 years and 12.5 million options exercisible at $0.08 within 5 years.
Derewo consists of mining rights and exploration registered applications over 129,000 hectares centred on the Derewo River.
The project includes; a 50% interest in existing alluvial mining projects, and a 50% interest in exploration registered applications, (with the right to increase to 80%), to target the source of the Derewo River alluvials.
To provide funding for exploration at the new project, West Wits has launched a capital raising.
A share placement will raise up to A$3 million, pending shareholder approval, with a SPP to potentially raise an additional $500,000.