West Wits Mining Ltd (ASX:WWI) has received commitments to complete a capital raising of $735,000 through the issue of 122.5 million ordinary shares at an issue price of 0.6 cents per share to sophisticated investors.
The company will issue 18,901,434 shares under its 10% capacity.
Funds will provide working capital to support West Wits’ activities ahead of the anticipated grant of the mining right for its Witwatersrand Gold Project in South Africa.
Further placement considered
The company is also considering a further placement to raise up to $250,000 at a price of 0.6 cents per share.
This initiative is being examined to accommodate sophisticated investors, specifically clients of DH Flinders who were not able to be accommodated in the placement.
The dilutive effect on existing shareholders of the capacity shares in the issue is:
The issue price of the shares represented a 14.2% discount to the volume weighted average price (VWAP) for 15 days on which trades of the company’s shares were recorded on the ASX ending July 25, 2019.
This capital raising was considered the most efficient and effective method of meeting this identified demand.
There was no underwriting agreement in relation to the issue of the capacity shares and a fee of 6% (plus GST) will be paid to Shaw and Partners Ltd for assisting in the issue of the capacity shares.
A cleansing prospectus is being prepared in connection with the issue of the placement shares and further announcements will be made when the prospectus is lodged, and placement shares are issued.