[miningmx.com] — WITWATERSRAND Consolidated Gold Resources (Wits Gold) said on Monday it has raised R120.05m through the issue of 2.22 million shares at 5,400 cents each.
The new shares represent approximately 7.0% of Wits Gold’s issued ordinary share capital prior to the capital raising, while the issue price of 5,400 cents corresponds to a 7% discount to Wits Gold’s 30-day volume weighted average price on November 5.
Wits Gold said the capital raising followed its announcement in September that it had entered into two transactions with Harmony Gold in the southern Free State.
The proceeds of the issue is intended to be used primarily to fund the company’s acquisition and planned exploration activities in the shallow De Bron-Merriespruit South area (the DBM Project).
Accordingly, 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 Wits Gold’s intention to valorise this project, possibly by bringing in a strategic mining partner to assist in its development.
Said Wits Gold CEO Marc Watchorn: “We are delighted with the positive response of institutional shareholders which reflects a vote of confidence in the potential of the DBM area. The recent transactions with Harmony have enabled the Company to consolidate a strategic block of potentially shallow resources that were previously separated by a farm boundary.
“Wits Gold believes that this shallow DBM Project merits further evaluation as it contains up to four discrete reef horizons at depths of 500 to 1200 metres.”
