West Wits Mining to raise $7 million for Witswatersrand gold project development

West Wits Mining Limited (ASX:WWI) has secured firm commitments to raise $7 million to rapidly advance a development program at its cornerstone Witswatersrand Basin Project in South Africa. The gold exploration and development company tapped existing and new unrelated sophisticated investors to raise the fresh funds at 6 cents per share. The early-August capital raise comes as West Wits prepares to kickstart further work at Witswatersrand, which is thought to contain 3.55 million gold ounces. West Wits described the mining right as “a pivotal milestone” as the company looks to move to producer status in the Central Rand Goldfields, a region famous for hosting the world’s largest-known gold reserves. Rapidly advance towards production Speaking to the capital raise, West Wits managing director Jac van Heerden said: “The $7 million capital raising provides West Wits with the funding to rapidly advance the development program at the WBP towards production, made possible by the granting of the Mining Right at the WBP in July 2021. “Scope of works are being finalised with civil engineering and mine contractors, onsite meetings have been held and the Definitive Feasibility Study is in the final stages. “The specialist ground survey team has mobilised to Mt Cecelia and is set to commence MLTEM surveys. “This work at the Mt Cecelia project in the East Pilbara paves the way towards a maiden drilling campaign in 2022 field season. The strong support for this raising is an endorsement of our plans to rapidly advance WBP and ramp up exploration at Mt Cecelia.” Work at Witswatersrand Ultimately, West Wits believes the placement will strengthen its balance sheet and fund its upcoming operations. At Witswatersrand, this includes: Site establishment and kickstarting surface infrastructure construction; Box cut rehabilitation and underground development at the Qala shaft; Exploration at Main Reef & Bird Reef; The Qala Shallows early production initiative; A Main Reef definitive feasibility study; and Social and labour plan initiatives. Currently, the cornerstone gold project’s global mineral resource estimate sits at 25.91 million tonnes, grading at 4.26 g/t gold for 3.55 million gold ounces at a 2 g/t cut-off grade. West Wits will also use the cash injection to support ground exploration at Mount Cecelia and for corporate and working capital purposes. Placement details West Wits appointed PAC Partners Securities Pty Ltd as lead manager to the placement, which, according to the company, attracted bids significantly over the $7 million mark. Overall, the ASX-lister’s latest raise saw placement shares, placement options and broker options issued to secure the fresh funding, West Wits has received firm commitments to place more than 116 million placement shares with sophisticated investors for 6 cents each. The pricing represents a 17.3% discount to the five-day volume-weighted average price of WWI shares at 7.25 cents. It also marks a 13% discount to the last closing price of 6.9 cents on July 29 — the last day of trade ahead of the trading halt. West Wits will also issue more than 58 million placement options — equal to one for every two new placement shares. Finally, the company will place more than 11 million broker options with PAC Partners and/or their nominees on the basis of one placement option for every ten placement shares issued. Both option types bear a 12-cent exercise price and expire one year from issue. All up, 116,786,667 placement shares, 58,393,333 placement options and 11,678,666 broker options will be issued under West Wits’ existing placement capacity.