West Wits Mining raises $2.5m for South African project
2 min read
- West Wits Mining (WWI) gets firm commitments from sophisticated and professional investors to raise $2.5 million
- The company will issue over 138.8 million shares at 1.8 cents to raise the funds, marking a 15 per cent discount to its 15-day volume-weighted average price
- West Wits Mining will use the funds to ensure the Qala Shallowsarea is ready for operations as it ramps up gold production at the Witwatersrand Basin project in South Africa
- The company is also progressing a three-phased drilling program exploring for uranium
- WWI shares are down 13 per cent to trade at 2 cents per share at 1:35 pm AEST
West Wits Mining (WWI) has received firm commitments from private investors to raise $2.5 million.
The company will issue around 138.8 million shares to sophisticated and professional investors at 1.8 cents per share. The issue price represents a 15 per cent discount to the company’s 15-day volume-weighted average price of 2.12 cents.
West Wits plans to use the funds to maintain “operational readiness” at the Qala Shallows area within its Witwatersrand Basin project in South Africa.
More specifically, the company will ramp up the development of the project as outlined in the recently revised definitive feasibility study. It will also complete a phase one drilling program as part of its three-phased uranium exploration program.
“Securing this $2.5 million placement at a time when there is global market uncertainty is a great result for West Wits,” 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.”
WWI shares were down 13 per cent to trade at 2 cents per share at 1:35 pm AEST.
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