PERTH (miningweekly.com) – Junior West Wits Mining will raise A$1.5-million to advance its Witwatersrand Basin gold project, in South Africa.

The ASX-listed company on Friday said it had received firm confirmation for the placement of more than 107.1-million new shares, at a price of 1.4c each, representing a 13.8% discount to West Wits’ five-day volume weighted average price, and a 22.1% discount to its 15-day volume weighted average share price.

In addition to the share placement, West Wits will also undertake a share purchase plan (SPP) to raise up to A$1-million. Under the SPP, eligible shareholders will be able to subscribe for up to A$30 000 of additional shares in the company, also at a price of 1.4c a share.

The SPP will close on March 13.

“We are pleased with the take-up of the A$1.5-million placement, which was oversubscribed, and to provide the opportunity to existing shareholders to participate via the SPP. Funding enables the company to commence the in-fill drilling programme which aims to double the current ore reserve of 290 000 oz gold, install critical infrastructure and maintain operational readiness at Qala Shallow to move into production,” said West Wits MD Jac van Heerden.

“Having secured the toll-processing agreement with Sibanye-Stillwater in the fourth quarter of 2022, the company is advancing discussions with potential funders and we look forward to being able to update the market on this in due course.”

Under the terms of the agreement, West Wits will supply Ezulwini Mining Company, which is a subsidiary of Sibanye-Stillwater, with 15 000 t a month of gold-bearing material. Over time, this volume would increase to up to 54 000 t a month.

The plan is to build up a stockpile of up to 30 000  t and to start delivering the ore to Sibanye-Stillwater at a constant rate of 15 000 t a month before building to 20 000 t a month and 54 000 t a month at peak production within three years.