West Wits Mining Limited (ASX:WWI), an Australian company focused on the exploration, development and production of high-value precious and base metals, has issued 100,386,000 unlisted options to Absa Bank Limited to settle fees of approximately AUD 680,000. The fees were payable to Absa under the R 875 million senior syndicated loan facility. Each option has an exercise price of $0.0185 and expires five years from the issue date, aligning with the facility’s tenor.
Absa’s strategic endorsement reflects its pivotal role in advancing the broader funding package for the Qala Shallows project. Discussions initiated in October 2024 saw Absa proactively seeking equity exposure ahead of the facility’s credit committee approval in February 2025. This move underscores Absa’s confidence in the Qala Shallows project and the broader Witwatersrand Basin Project.
The exercise price of $0.0185 represents a 15% premium to the 5-day VWAP of WWI shares before the credit committee approval announcement on February 20, 2025. While the current share price is around $0.05, the pricing metrics were established earlier, before the facility’s credit approval and the recent gold price increase. West Wits CEO Rudi Deysel stated that Absa’s early preference to secure equity exposure is a strong vote of confidence in the company’s vision.
The unlisted options were issued under the placement capacity available to the Company under Listing Rule 7.1. An Appendix 3G has been released to ASX for the issue. The equity settlement is set to strengthen the partnership between West Wits and Absa as West Wits progresses towards its strategic objective of becoming a mid-tier gold producer.
