West Wits Mining Ltd (ASX:WWI, OTCQB:WMWWF) earlier this week sat down with Proactive to discuss the $17.5 million raised through a placement to accelerate the Qala Shallows development in South Africa. The project is the first stage of the company’s five-phase Witwatersrand Basin Project.
Highlights
- West Wits Mining is raising $17.5 million to advance development of the Qala Shallows project.
- The funding exceeds requirements tied to the US$12.5 million Natural Resources Fund facility.
- The company has raised over $33 million in the last 3.5 months.
- West Wits is now fully funded through to sustainable gold production.
- Pre-development activities have already begun, including site activation and underground access.
- Contractors are on-site and full development is underway.
- Ore production is expected to begin before the end of October.
- Gold pour is targeted for March or April 2025.
- The capital raise allows the company to move from early-stage preparation to full-scale development.
Improved financial position
The funds West Wits has raised will contribute to capital, contingency costs, operating expenses, and working capital. It said this latest raise exceeds the equity contribution required to unlock a previously announced US$12.5 million facility from the Natural Resources Fund.
West Wits Mining highlighted that the combined effect of the new placement, a previous $14.5 million raise in June, and the exercise of options has resulted in over $33 million raised in the last three and a half months. It said this financial position provides the foundation to proceed with all development commitments.
Fully funded to sustainable production
Chairman Michael Quinert told Proactive that the company is now “fully funded to sustainable production.” He added that there remain options to further accelerate development if required.
Quinert said the company has already mobilised contractors and begun pre-production works at Qala Shallows. “We've used the money that we raised in June to pre-prepare the site, reactivate it, open the underground decline, declare it safe, and mobilise contractors,” he said.
All relevant contracts have now been signed, and the company has transitioned into the full development phase. Ore production is expected before the end of October.
Stockpiling is forecast to begin early next year, with first gold pour targeted for the first half of 2025. “I'm hoping towards the start of that, maybe March, maybe April,” Quinert said.
The company said the additional funding now consolidates its position to continue development without delays.