West Wits Raises $14M to Launch Qala Shallows and Boost Project Control
West Wits Mining has raised approximately A$14.36 million through a share placement to fund production at its Qala Shallows gold project and increase its ownership in the Witwatersrand Basin Project to 74%.
- Placement of 652.6 million shares at A$0.022 each raising A$14.36 million
- Free-attaching options exercisable at A$0.0385 subject to shareholder approval
- Buy-back of 10% minority interest to increase project ownership from 66.6% to 74%
- Funds allocated for Qala Shallows production commencement and feasibility study review
- Three directors committed to participate in the placement
Capital Raise to Accelerate Gold Production
West Wits Mining Limited (ASX, WWI) has successfully secured firm commitments to raise approximately A$14.36 million through a share placement priced at 2.2 cents per share. This capital injection is aimed at kickstarting production at the Qala Shallows gold project, the initial phase of the broader Witwatersrand Basin Project (WBP) located in South Africa’s renowned Central Rand Goldfield.
The placement involves issuing over 652 million new shares to a mix of existing and new sophisticated investors, accompanied by free-attaching options exercisable at 3.85 cents, pending shareholder approval. This structure offers investors potential upside while providing West Wits with the necessary funding to advance its operations.
Increasing Stake in a World-Class Gold Region
In a strategic move, West Wits has agreed to buy back a 10% minority interest in its South African subsidiary, West Wits (SA) Pty Ltd. This transaction will increase the company’s effective ownership in the WBP from 66.6% to 74%, consolidating control over a project boasting over 5 million ounces of gold resources at an average grade of 4.66 grams per tonne.
Chairman Michael Quinert highlighted the significance of this milestone, noting that the capital raise not only enables the commencement of production but also strengthens West Wits’ position in a highly prospective gold district. The Witwatersrand Basin is historically the world’s largest gold-producing region, and West Wits is positioning itself to capitalize on this legacy.
Funding Allocation and Governance
The funds raised will be allocated to several key areas, initiating operations at Qala Shallows, reviewing and optimizing the existing feasibility study, funding the buy-back agreement, and covering general working capital and corporate expenses. The company has also disclosed that three directors have committed to participate in the placement, signaling confidence from management.
Shareholder approval will be sought at an Extraordinary General Meeting (EGM) scheduled for late July 2025 to approve the issuance of the free-attaching options and conversion of certain existing loans into shares and options on similar terms. This approval process introduces a degree of uncertainty but is a common step in capital raising exercises of this nature.
Looking Ahead
With the placement shares expected to be allotted by mid-June and quotation shortly thereafter, West Wits is poised to transition from development to production. The company’s focus on the Qala Shallows project marks a critical juncture, potentially unlocking value for shareholders and establishing West Wits as a meaningful gold producer in a competitive market environment.
Bottom Line?
West Wits’ capital raise and ownership consolidation set the stage for a pivotal production phase, but shareholder approval remains the next hurdle.
Questions in the middle?
- Will shareholders approve the free-attaching options and loan conversions at the upcoming EGM?
- How soon can West Wits realistically commence production at Qala Shallows following the capital raise?
- What impact will the increased ownership stake have on West Wits’ operational control and future project decisions?
