Shares of West Wits Mining Ltd (ASX:WWI) jumped more than 20% during the day after securing an equity financing facility with SBC Global Investment Fund to raise up to $75 million.
SBC has a global mandate and a particular focus on resource companies with leverage on commodity prices.
The agreement provides WWI with up to an aggregate maximum of $75 million in reserve capital over 2 years.
Attract global interest
The deal continues the WWI expansion into North American and overseas investor markets, after securing US flagship investor Wingfield Capital Partners, the company attracting global interest as the Witwatersrand Basin project (WBP) of 4.28 million ounces goes into production.
In addition to the $75 million equity deal, WWI is advancing its core debt financing program through Africa-focused corporate advisor Taurum International to secure the project funding for the WBP.
World War I President Michael Quinert said, “We are delighted to have entered into the agreement with North American investor SBC Global Investment Fund, which provides the company with the flexibility to manage the capital while focusing on longer-term strategic financing for the development of the WBP.
“The deal extends the company’s reach into the North American market, with the investor having a clear view of the strong upside potential offered by WWI’s 4.28Moz-branded gold project.”
Drawdowns of the $75 million in equity are at WWI’s sole discretion as to size and timing and provide significant flexibility for WWI’s growth into a mid-tier gold miner.
Under the agreement, WWI retains full control of all aspects of the underwriting process, having discretion as to whether to request share placements from SBC, the timing of such share placements, and the maximum number of ‘shares to be issued under each location share.
Other internship conditions
No single placement under the facility may exceed a maximum of 9.99% of the issued WWI shares unless there is mutual consent to exceed this limit, nor result in the aggregate number of Shares held by SBC exceed 14.99% of the number of shares issued during World War I. .
If WWI does not meet these conditions with respect to a placement, that placement will not be requested.
WWI will also retain the flexibility to secure its core funding needs through conventional corporate finance transactions, such as debt, equity, streaming and royalty financings, all of which are permitted as beyond the scope of this agreement.
To that end, World War I, through Taurum International, continues to advance its debt and core financing objectives and this agreement is seen as supplementing rather than superseding that initiative.