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West Wits Mining to raise $1 million for development of South African gold project

Last updated: 13:08 25 Oct 2018 AEDT, First published: 22:08 24 Oct 2018 AEDT

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West Wits will be performing an investor roadshow during the offer period

West Wits Mining Limited (ASX:WWI) will raise up to $1 million through a share purchase plan (SPP) to accelerate the development of its Witwatersrand Basin Project (WBP), a gold asset in South Africa with over 3.6 million ounces in mineral resources.

Funds will be used to advance the Kimberley East underground target, including commissioning of scoping and pre-feasibility studies as well as further work on the K9A Reef exploration target.

West Wits will also put the cash towards completion of its mining licence application, as well as working capital once the permits have been granted.

Commitments to participate have also been received by West Wits directors and management.

 

West Wits chairman Michael Quinert said the board had decided to raise funds through an SPP to maintain the momentum achieved over the past 18 months.

“WBP is entering the next phase of development which is achievable through the sizable growth of the JORC resource and WBP’s mining licence application entering the later phase of the approval process.

“The company is seeking funds to accelerate activities that will advance the project towards full-scale mine development.

“The SPP provide an attractive investment opportunity to existing shareholders, highlighted by the company receiving commitments from directors and key management personnel to participate which will underpin the raising.”

READ: West Wits Mining progresses permits, meets September production target

The SPP will allow eligible shareholders to purchase up to $15,000 in fully paid shares without incurring brokerage and other transaction costs.

New shares will be issued at 1.2 cents representing a 14.3% discount to the 30-day volume weighted average price (VWAP) and a 10.4% discount to the 10-day VWAP.

Shareholders will be able to subscribe to five different offer parcels, ranging from $1,000 for 83,333 shares up to $15,000 for 1.25 million shares.

READ: West Wits Mining expands exploration potential of South African gold project

A quarter of funds raised will be used for developing the Kimberley East target, $200,000 will go towards WPB’s mining permits and the remainder for working capital, including the anticipated extension of open pits.

Applications for the SPP open tomorrow and are expected to close on November 22, 2018.

West Wits Mining raises $1.2 million to advance Qala Shallows

West Wits Mining Ltd (ASX:WWI, OTCQB:WMWWF) chairman Michael Quinert speaks with Proactive after the company raised $1.2 million to support the installation of utility and infrastructure, site management and production planning at Qala Shallows, part of Witwatersrand Basin Project in South...

on 2/11/23