West Wits Mining Limited (ASX:WW1) has signed a subscription agreement with US-based investment group Wingfield Capital Partners LLC for US$1 million through the issue of 1 million convertible notes.
The funding enables the company to begin executing its growth strategy by undertaking further exploration focused on gold.
West Wits aims to increase the 3.65 million ounce gold resource at Witwatersrand Basin Project in South Africa and also begin feasibility studies at the Kimberley East underground target as well as to commission the first phase of exploration at Mt Cecelia Gold Project in WA’s Pilbara region.
Facilitating growth into 2020
Chairman Michael Quinert said: “The company has been seeking well-funded investment partners that share the long-term view of the significant underlying value of the company’s Witwatersrand Basin Project.
“Wingfield, a successful Houston-based investment group, has expressed strong support for the Witwatersrand project and a desire to support us over the long haul.
“The US 1 million convertible note agreement will underpin our balance sheet and the company’s securities register which will facilitate growth entering 2020.
“The funds will enable West Wits to progress key value drivers in both South Africa and Australia whilst the management team continue to press on with the mining right application which is anticipated to be granted early in the year.”
Key details
The subscription is for two tranches of convertible notes.
The first tranche is for US$400,000 and will be issued without shareholder approval.
The second tranche is for US$600,000 and will be subject to shareholder approval at a general meeting.
In recognition of Wingfield as a strategic and cornerstone investor, West Wits has agreed to offer it the opportunity to participate in future fundraisings.