West Wits Mining Ltd (ASX:WWI, OTCQB:WMWWF) has secured firm commitments to raise $1.4 million from unrelated existing and new sophisticated and professional investors via a share placement as the company works towards ore production from its flagship Qala Shallows project within the Witwatersrand Basin Project in South Africa.
The company undertook the capital raise to strengthen its balance sheet and fund ongoing operations as it continues to progress Qala Shallows. The project is forecast to produce nearly one million ounces of gold over its 17-year lifespan at a steady-state output of over 70,000 ounces annually at an operational cost of below $900 per ounce.
The placement will assist in funding site maintenance and engineering and production planning at Qala Shallows, along with project finance activities, including due diligence, and for general corporate and working capital including meeting the costs of the placement.
The placement will see West Wits issue 107,692,308 fully paid ordinary shares at A$0.013 per share to new and existing unrelated sophisticated and professional investors.
A bright outlook
West Wits chair Michael Quinert said: “The strong support for this placement underscores our confidence in the Qala Shallows gold project as we push to secure project funding to facilitate commencement of mining.
“With ore production scheduled only 6-8 weeks from commencement investors recognised the opportunity to gain exposure to near-term production in a surging gold price environment.”
The Qala Shallows project, supported by a comprehensive definitive feasibility study (DFS), is the first stage of the company’s plans to exploit the Witwatersrand Basin Project’s extensive 4.28-million-ounce gold mineral resource estimate (MRE).
Securing financing and commencing operations at Qala Shallows has been a priority of West Wits. Initiating gold production, alongside the exploration of additional prospects at the project, including uranium, is expected to significantly enhance the company’s growth prospects.