West Wits raises $27.5m through institutional investor placement
ASX-listed West Wits Mining has secured A$27.5-million through an equity placement, predominantly from institutional investors.
The placement helps to strengthen the company’s balance sheet, provides capital to advance exploration and fully funds West Wits through to gold production at the Qala Shallows project, in South Africa’s Witwatersrand region.
First gold production at Qala Shallows is targeted for March.
The placement was initiated through an unsolicited approach on behalf of institutional investors, which CEO Rudi Deysel says reflects growing confidence in the company’s development strategy.
The placement comprised the issue of 343-million new ordinary shares at A$0.08 apiece, which represents a 7% discount to the 15-day volume weighted average share price of West Wits.
Every two shares are accompanied by one unlisted option to buy more shares at a price of $0.11 apiece, which will be valid for three years.
Qala Shallows comprises the first phase of West Wits’ overarching Witwatersrand Basin project, which targets the production of 1.6-million ounces of gold over a 27-year mine life. Qala Shallows alone is poised to produce 70 000 oz/y for 12 years, totalling 944 000 oz.
Looking ahead, West Wits aims to advance its Project 200 through a scoping study, which would expand the company’s production to about 200 000 oz/y, and to conduct drilling at the BRC Uranium target to expand the company’s exposure to strategic commodities within the Witwatersrand basin.
“We are particularly pleased to be strengthening our institutional share register at this stage of the company’s evolution, as we transition from developer to producer.
“In parallel, the capital raised enables us to advance growth opportunities across the Witwatersrand Basin project, including Project 200 and the BRC Uranium target, providing shareholders with meaningful upside beyond initial production,” Deysel comments.
