PERTH (miningweekly.com) – Junior West Wits Mining will raise A$9.3-million in a nonrenounceable underwritten rights issue to fund its Witwatersrand Basin gold project, in South Africa, towards production.
The company would issue one new share for every six shares held, at a price of 3c each, to raise A$7.86-million before costs. The rights issue is fully underwritten by Evolution Capital.
The company has also completed a share placement to an unrelated sophisticated and professional investor, priced at 3.2c each, to raise a further A$1.6-million.
The shares made available under this placement were under West Wit’s existing capacity, and will not require shareholder approval.
“Following the granting of the mining right and completion of the Qala Shallows Stage 1 definitive feasibility study in the third quarter of 2021, West Wits has rapidly advanced site establishment, mine development and the early mining initiative at the Witwatersrand Basin project in South Africa,” said MD Jac van Heerden.
“The additional funding will allow us to continue the momentum towards first ore production scheduled for the first quarter of 2022, in addition to progressing our exploration at the Mt Cecelia project in Western Australia.
“The near fully underwritten rights issue gives the company great confidence and provides a significant opportunity for our shareholders to participate in funding the Witwatersrand Basin project’s ramp-up into production, whilst the company advances debt funding initiatives to take the WBP towards full-scale operations.”