- West Wits Mining (WWI) investor Wingfield Durban Deep has converted all one million of its convertible notes in the company
- In consideration for the conversion, the company has issued over 167 million fully paid ordinary shares to Wingfield
- This formalises Wingfield’s position as a substantial shareholder and strategic investor in West Wits Mining
- The conversion also significantly improves the company’s balance sheet as it progresses its flagship Witwatersrand Basin Project
- West Wits Mining is in the grey and trading at 7.5 cents per share
West Wits Mining (WWI) investor Wingfield Durban Deep has converted all one million of its convertible notes in the company.
Wingfield converted US$1,173,200.25 (approximately A$1,510,707) in convertible notes at US$0.07 (roughly A$0.09) per share in the company. In consideration, West Wits issued 167,600,036 fully paid ordinary company shares to Wingfield.
This formalises Wingfield’s position as a substantial shareholder and strategic investor in the mining company. A director of Wingfield, Scott Kell, explained the decision to cement the investment in West Wits and its targeted gold production.
“Wingfield believes that gold prices will rise in the coming years, and with that the significant potential economic viability of the rest of the historical 12.8-million-ounce AU response (JORC 1997), including those areas currently below the water table,” he said.
“We see the potential for developing WBP into a world-class tier-one gold asset. We are excited for the future of WWI,” he added.
The conversion also significantly improves West Wits’s balance sheet, removing US$1.17 million (approximately A$1.5 million) in debt. WWI says this will greatly benefit the company as it prepares for the underground mine development at its flagship Witwatersrand Basin Project (WBP).
West Wits is currently awaiting a mining right application grant and the completion of the bankable feasibility study at the project in 2021’s second quarter.
West Wits’ Managing Director, Jac van Heerden, commented on Wingfield’s conversion of its convertible notes.
“The board welcomes Wingfield’s election to convert and the taking up of a substantial holding in the company,” he said.
“Wingfield’s election provides a vote of confidence in the company’s execution of its development plan as the WWI Team targets maiden underground production at the WBP in 2021,” he added.
West Wits Mining is in the grey, trading at 7.5 cents per share at 2:18 pm AEDT.