West Wits Mining Ltd (ASX:WWI) (West Wits Mining Ltd (ASX:WWI)) is set to increase its ownership in the Witwatersrand Basin Project (WBP) in South Africa to 74% from 66.6% for $50,000 in cash and 96 million fully paid ordinary shares.
The Company notes that 75% of the WWI shares will be held in escrow released via two equal tranches (36M WWI shares each), being 240 days and 360 days from the completion date respectively.
WWI has agreed with its BEE (Black Economic Empowerment) partner, Lilitha Resources to acquire Lilitha’s interest in its subsidiary West Wits Mining SA, a move that will increase WWI’s direct ownership and simplify the corporate structure.
“The Acquisition increases WWI’s share of the WBP at a substantial notional discount to the value implied by the US$227 million NPV of the WBP Scoping Study released in March this year,” West Wits Managing Director Mr Jac van Heerden said.
“The transaction also substantially simplifies the Company’s corporate structure, making WWM SA 100% owned by WWI, and further aligns our BEE partner’s interest to the Company by becoming a WWI shareholder, extending our long-term and valued relationship.”
Lilitha has played an integral role in WWI’s activities and was instrumental in obtaining the WBP’s mining right. Obtaining direct interest in the WBP as a WWI shareholder underscores the strategic partnership and commitment to the growth of WWI.
The acquisition extends the two companies’ long-term relationship.