West Wits Mining Ltd (ASX:WWI, OTCQB:WMWWF) has secured firm commitments to raise approximately A$14 million before costs via a share placement to sophisticated and professional investors. The capital injection will support the start of mining operations at the Qala Shallows gold project in South Africa and increase the company’s stake in the broader Witwatersrand Basin Project (WBP) to 74%.
Every two shares issued will carry one free-attaching option, subject to shareholder approval. Proceeds will also support a feasibility study review and fund general working capital.
“This fundraising enables West Wits to commence the exciting process of bringing Qala Shallows into production. We start this journey in an ideal environment for gold producers, whose ranks we are now joining. The fact that we will also be significantly increasing our stake in the overall project at this time is an added bonus,” West Wits chairman, Michael Quinert said.
Qala operations
The money raised will fund the start of operations at the Qala Shallows gold project — Phase 1 of the broader WBP.
Funds will also support the review and optimisation of the existing feasibility study.
Notably, A$7.5 million (approx. US$5 million) is allocated for the buy-back of a 10% interest in West Wits SA, raising West Wits' overall interest in WBP from 66.6% to 74%.
Remaining funds will be used for general working capital and corporate costs.
Placement structure and terms
The placement involves issuing 652,636,348 fully paid ordinary shares at A$0.022 per share, representing an 18.5% discount to the last closing price.
Each two shares will be accompanied by one free-attaching option exercisable at A$0.0385, expiring two years from issue. The options are subject to shareholder approval at a general meeting slated for late July 2025.
Settlement and allotment of shares are expected on June 19, 2025.
Director participation and debt conversion
In a show of support and confidence from directors, three directors — Michael Quinert, Andrew Grigor and Jacques van Heerden — have committed to participate in the placement, subscribing for an aggregate of A$260,000, pending shareholder approval.
Additionally, approval will be sought to convert existing loans of A$550,000 plus interest into shares and options on the same terms as the placement.
This includes a A$100,000 loan from Quinert.
The conversion is conditional on shareholder approval at the upcoming general meeting.
Advisers and indicative timetable
West Wits appointed Treadstone Resource Partners as strategic and financial adviser and QR Lawyers as legal counsel. Canaccord Genuity (Australia) and Bell Potter Securities acted as Joint Lead Managers and Bookrunners, with Alpine Capital serving as co-manager.
