West Wits Mining Ltd's (ASX:WWI) shares are expected to open stronger this morning following the company pouncing on one of the few remaining project areas in the eastern Pilbara that is prospective for conglomerate gold mineralisation.
West Wits will acquire Northern Reserves Pty Ltd (NRPL) through a scrip based deal.
A significant area within the NRPL application area, known as Mt Cecelia, comprises the Hardy Formation and part of the Lower Fortescue Group.
Two of the high profile Novo Resources’ (TSX-V:NVO) key projects are both the Lower Fortescue Group, which is the same system within Mt Cecelia’s project area.
Mt Cecelia’s geology is consistent with the Witwatersrand-style conglomerate gold mineralisation found in South Africa, where West Wits has the highly complementary Soweto Cluster gold project.
The company is now in a unique position among peers to be able to leverage its geology team’s hands-on experience in the Witwatersrand Basin to expedite understanding the Mt Cecelia project area.
To advance the next steps, West Wits will conduct a capital of up to $1.75 million at $0.017 through a placement and share purchase plan.
West Wits will:
- Issue 3,000,000 West Wits shares immediately;
- Issue 52,000,000 West Wits shares on completion;
- Grant 10,000,000 3-year West Wits options with a $0.05 exercise price;
- Issue 10,000,000 West Wits shares and payment of $75,000 upon grant of the licence application;
- Issue up to 35,000,000 West Wits shares upon commencement of a reverse circulation-percussion drilling program within the area comprised in the license application; and
- Pay an aggregate net smelter royalty of 1% of net revenue from production within the licence application.