West Wits Mining Ltd (ASX:WWI, OTCQB:WMWWF) has raised $1.2 million, before costs, at $0.011 per share to go towards the installation of utility and infrastructure, site management and production planning at Qala Shallows which is part of Witwatersrand Basin Project (WBP) in South Africa.
WWI expects the WBP to transform it into a long-term gold producer.
The company's plans for the WBP are ambitious, with the development of three mining reefs: the Main, Kimberley, and Bird Reefs. Qala is a flagship project on the Kimberley Reef.
“While our project debt funding arrangements are building, West Wits requires working capital to complete the rest of the work ahead to commence development of the Qala Shallows project. With gold now trading around US$2,000 per ounce, the timing for West Wits’ gold project is good,” West Wits chair Michael Quinert said.
“Thanks again to those shareholders who have been steadfast in their support of the company. We are now on the cusp of developing South Africa's newest gold mine in one of the most favourable price environments in recent history.”
About the raise
West Wits will issue 109,090,909 fully paid ordinary shares at $0.011 (1.1 cents) per placement share to new and existing unrelated sophisticated and professional investors who are clients of the joint lead managers or who WWI has identified as part of its investor relations activities.
Far East Capital Limited (LSE:CAPD) and Ignite Equity Pty Ltd acted as joint lead managers of the placement.
The placement shares are expected to be allotted on or about November 8, 2023.
Use of funds
WWI has raised the money to strengthen its balance sheet and fund its ongoing operations, including:
- Qala Shallows: installation of utility and infrastructure
- Qala Shallows: site maintenance
- Qala Shallows: engineering and production planning
- Prospecting right extension
- General work capital including meeting the costs of the placement
WWI’s focus
The WBP is located in the proven gold region of Central Rand Goldfield of South Africa and boasts a 4.28-million-ounce gold project at 4.58g/t.
The Witwatersrand Basin is a largely underground geological formation which surfaces in the Witwatersrand. It holds the world's largest known gold reserves and has produced more than1.5 billion ounces (over 40,000 metric tons), which represents about 22% of all the gold accounted for above the surface.
In Western Australia, WWI is exploring for gold and copper at the Mt Cecilia Project in a district that supports several world-class projects such as Woodie Woodie manganese mine, Nifty copper and the Telfer gold/copper/silver mines.