West Wits Mining Ltd (ASX:WWI, OTCQB:WMWWF) will raise A$17.5 million through a placement to institutional, sophisticated and professional investors, to accelerate the development of the Qala Shallows Project. The funds will help WWI take a key step towards near-term gold production at the Witwatersrand Basin Project in South Africa.
Use of proceeds
Funds raised will be applied to:
- capital and contingency costs for Qala Shallows development,
- operational expenditure,
- financing costs, and
- general corporate and working capital requirements.
These funds, alongside existing cash and debt facilities, position the company to bring Qala Shallows into production efficiently.
Placement terms and timing
The placement attracted strong domestic and international demand and complements the recently secured ZAR875 million (~US$50 million) IDC/Absa loan facility and US$12.5 million from Nebari.
Read more: West Wits secures Nebari loan facility to advance Qala Shallows Gold Project
“This successful A$17.5 million placement represents another pivotal milestone for West Wits. Together with our recently secured funding facilities, West Wits is firmly placed to deliver on its growth strategy,” chairman Michael Quinert said.
West Wits will issue 437.5 million new shares at A$0.04 per share, representing:
- a 14.9% discount to the last close of A$0.047,
- an 11.4% discount to the 5-day VWAP of A$0.0451, and
- a 2.4% discount to the 10-day VWAP of A$0.0410.
Qala Shallows project overview
Qala Shallows, the first stage of West Wits’ five-stage Witwatersrand Basin Project (WBP), boasts:
- an Ore Reserve of 4.6 million tonnes at 2.60 grams per tonne gold for 383,934 ounces,
- a Life-of-Mine of approximately 17 years for 944,000 ounces, and
- a 12-year steady-state production target of 70,000 ounces annually.
The Definitive Feasibility Study (DFS) area represents 60% of the original Scoping Study zone.
A toll-treatment agreement was secured in 2022 with Sibanye-Stillwater to process Stage 1 ore. The company plans to build a 30,000-tonne stockpile and commence ore delivery at 15,000–20,000 tonnes per month, ramping to 65,000 tonnes per month within three years.