- West Wits Mining (WWI) is set to raise $1.5 million through a share placement to aid development at its Witwatersrand Basin project in South Africa
- Under the placement, WWI plans to issue around 107 million shares to investors at 1.4 cents per share — a 22.1 per cent premium to its 15-day VWAP of 1.8 cents
- The company also launched a SPP on the same basis as the placement to raise an additional $1 million
- WWI plans to use the funding boost for infill drilling to convert mineral resources to ore reserves and to install critical infrastructure at the Qala Shallows mine site
- Shares in West Wits are down 6.25 per cent, trading at 1.5 cents at 11:55 am AEDT
West Wits Mining (WWI) has launched a $1.5 million placement to aid development work at its Witwatersrand Basin project in South Africa.
Under the placement, the company plans to issue roughly 107 million shares at 1.4 cents per share.
In addition, the company also launched a share purchase plan (SPP) for existing shareholders on the same basis as the placement in a bid to raise an additional $1 million.
The price of both the placement and SPP represents a 22.1 per cent premium to West Wits’ 15-day volume-weighted average price (VMAP) of 1.8 cents.
Managing Director Jac van Heerden said it was pleasing to see the placement receive strong support.
“We are pleased with the take up of the $1.5 million placement, which was oversubscribed, and to provide the opportunity to existing shareholders to participate via the SPP,” Mr van Heerden said.
He said the funding would help the company begin its infill drill program as it worked to double its current ore reserve of 290,000 ounces of gold.
West Wits has also set its sights on installing infrastructure and maintaining operational readiness at the Qala Shallow mine site as it moves into production.
The placement shares are expected to be issued on February 14, 2023, with the trading of those shares commencing on February 15.
As for SPP, the closing date is March 13, 2023, with an issue date of March 20.
Shares in West Wits were down 6.25 per cent and trading at 1.5 cents at 11:55 am AEDT.