West Wits to raise A$14m to start operations at Qala Shallows, increase its stake in WBP
ASX-listed West Wits Mining, which has gold mining assets in South Africa, has received firm commitments to raise A$14.36-million through a share placement to existing and new sophisticated and professional investors.
The placement is aimed at strengthening the company's balance sheet, increasing its holding in the Witwatersrand Basin project (WBP) and to fund the start of operations at the Qala Shallows gold project, which is the first phase of the broader WBP.
West Wits will use $5-million of the funds raised to buy back a 10% minority interest in West Wits South Africa, which will increase the company's shareholding in the WBP to 74%, from the current 66.6%.
“This fundraising enables West Wits to commence the exciting process of bringing Qala Shallows into production. We start this journey in an ideal environment for gold producers, whose ranks we are now joining. The fact that we will also be significantly increasing our stake in the overall project at this time is an added bonus,” says chairperson Michael Quinert.
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