Wits Gold raises R120m through share issue
Midtier gold miner Wits Gold has raised gross proceeds of R120-million, through the issue of just over 2,2-million ordinary shares at R54 a share, to fund an acquisition and planned exploration activities in the Free State.
The new shares represent about 7% of Wits Gold’s issued ordinary share capital prior to the capital raising, while the issue price of R54 corresponds to a 7% discount to Wits Gold’s 30-day volume- weighted average price on Novem- ber 5. These conditions are in accordance with an ordinary resolution passed at the annual general meeting of the company held on September 10, which authorised the directors of the company to issue shares for cash in accordance with the JSE listings requirements.
This capital raising follows the announcement by Wits Gold on September 7 that the company had entered into two transactions with Harmony Gold, in the southern Free State.
The proceeds are intended to be used primarily to fund the Merriespruit South acquisition and planned exploration activities in the shallow De Bron-Merriespruit South (DBM) area. The company has mobilised five drill rigs and is actively investigating the possibility of exploiting this ground using new or existing infrastructure.
The funds raised will enable the company to undertake drilling, followed by resource definition, scoping and appropriate environmental and feasibility studies.
Subject to the success of this programme, it is the company’s intention to valorise this project, possibly by bringing in a strategic mining partner to assist in its development.
Commenting on the capital raising, Wits Gold CEO Marc Watchorn says that the company is delighted with the positive response of institutional shareholders, which reflects a vote of confidence in the potential of the DBM area.
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