West Wits Mining Ltd (ASX:WWI) has raised $2.5 million in a share placement to bolster the development of the Witwatersrand Basin Gold Project (WBP) in South Africa, which already holds a 4.28-million-ounce JORC mineral resource at 4.58 g/t gold.
The funds were raised with commitments from existing, new and unrelated sophisticated and professional investors at a share price of $0.018.
The additional finance will be used to maintain the operational readiness of the Qala Shallows prospect – the first stage of four development phases at Witwatersrand.
The company intends to action a ramp-up of development outlined in a revised definitive feasibility study (DFS) for the project, which also demonstrated:
- life-of-mine (LOM) production forecast of 668,000 ounces of gold;
- all-in sustaining cost (ASIC) of A$1,545 (US$1,093); and,
- pre-tax net present value (7.5% inflation discount) of A$260 million (US180 million) at a gold price of US$1,750.
The $2.5 million will also support the first phase of drilling for uranium exploration at the WBP, part of a three-phase, 15-hole program.
Placement a “great result for West Wits”
“Securing this $2.5 million placement at a time when there is global market uncertainty is a great result for West Wits, as we maintain operational readiness at Qala Shallow to move into production, whilst concurrently carrying out Phase 1 of our exciting uranium exploration program at the wider WBP,” West Wits Mining managing director Jac Van Heerden said.
“We continue to progress our negotiations regarding a long-term toll processing agreement for our future gold production and we look forward to being able to update the market on this in due course.”
Far East Capital Ltd and Viriathus Capital Pty Ltd acted as joint lead managers for the share placement, which received bids well above the targeted $2 million.