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Highlights
- $14 million secured to begin Qala Shallows operations
- Stake in Witwatersrand Basin Project increases to 74%
- Directors back the capital raise with personal commitments
West Wits Mining (ASX:WWI) has announced a successful capital raise of approximately A$14 million, setting the stage for the initiation of gold production at the Qala Shallows project in South Africa and significantly increasing its ownership in the broader Witwatersrand Basin Project (WBP).
Strategic Use of Funds
The capital injection from a placement to sophisticated and professional investors will fund the commencement of mining at the Qala Shallows – the first phase of WBP. In parallel, West Wits aims to boost its ownership stake in the South African subsidiary by repurchasing a 10% interest for A$7.5 million, effectively lifting its total project stake from 66.6% to 74%.
Additional funds will be allocated toward reviewing and optimizing the current feasibility study, as well as supporting general working capital and corporate expenses.
Placement Details
The placement will result in the issue of 652.6 million new shares at A$0.022 each, marking an 18.5% discount to the company’s last traded price. Investors will also receive one free-attaching option for every two shares acquired. These options will be exercisable at A$0.0385 and are set to expire two years post-issuance, subject to shareholder approval in a general meeting scheduled for late July 2025. Settlement and share allotment are expected by June 19, 2025.
Board Confidence and Debt Restructuring
Signaling strong internal support, three directors – Michael Quinert, Andrew Grigor, and Jacques van Heerden – have collectively pledged A$260,000 in the placement, contingent on shareholder approval. Furthermore, shareholder approval will be sought to convert A$550,000 in outstanding loans and interest into equity under the same terms as the placement. This includes a A$100,000 loan from the company’s chairman.
Momentum for Growth
West Wits (WWI) is positioning itself to join the ranks of active gold producers by progressing Qala Shallows toward production in what it considers a favorable market environment for gold. The capital raise not only advances development plans but also strengthens its control over a key gold asset in the historically significant Witwatersrand Basin.
The move reflects strategic growth, increased board commitment, and a more consolidated asset ownership structure—all aimed at unlocking long-term value.
