West Wits Mining Limited (ASX:WWI) has confirmed that Wingfield Durban Deep, L.P (as nominee of Wingfield Capital Partners LLC) has elected to convert all 1 million convertible notes in the company.
The company today issued 167,600,036 shares to Wingfield in consideration for Wingfield converting US$1,173,200.25 in convertible notes at 0.7 US cents per share.
Wingfield’s election to convert 1-year into the initial 3-year term underscores the strength of West Wits progress over the past 12-months and strategic direction as the company prepares for underground mine development at its flagship 4.37 million ounces gold Witwatersrand Basin Project (WBP).
The conversion significantly improves West Wits’ balance sheet, removing US$1.17 million of debt, and formalises Wingfield’s position as a substantial holder and strategic investor in the company as WWI approaches the anticipated granting of the mining right application and scheduled completion of the bankable feasibility study in Q2 2021 at the WBP.
Potential world-class Tier 1 gold asset
Wingfield director Scott Kell said: “Wingfield has been delighted with its investment in the WWI Notes and is now pleased to become a substantial shareholder, cementing its ongoing commitment to WWI’s targeted gold production.
“The current 4.37m ounce AU JORC resource already evidences a significant deposit.
“Wingfield believes that gold prices will rise in the coming years and with that the significant potential economic viability of the rest of the historical 12.8M ounce AU resource (JORC 1997), including those areas currently below the water table.
“We see the potential for developing WBP into a world class Tier 1 gold asset. We are excited for the future of WWI."
Vote of confidence
West Wits managing director Jac van Heerden said: “The Board welcomes Wingfield’s election to convert and the taking up of a substantial holding in the Company.
“Wingfield’s election provides a vote of confidence in the company’s execution of its development plan as the WWI Team targets maiden underground production at the WBP in 2021.”