To strengthen its balance sheet and fund its ongoing operations, ASX-listed West Wits Mining has secured firm commitments from unrelated existing and new sophisticated and professional investors to raise A$1.4-million, before costs, through a share placement.
It intends to issue about 107.69-million fully paid ordinary shares at A$0.013 a piece.
The proceeds will be used for site maintenance, engineering and production planning on its Qala Shallows project, in South Africa, as well as for project finance activities, including due diligence, and to meet general corporate and working capital requirements.
The placement shares are expected to be allotted on or about May 9.
“The strong support for this placement underscores our confidence in the Qala Shallows gold project as we push to secure project funding to facilitate commencement of mining.
“With ore production scheduled only six to eight weeks from commencement, investors recognised the opportunity to gain exposure to near-term production in a surging gold price environment,” says West Wits chairperson Michael Quinert.