WEST WITS MINING LIMITED Announcement (ASX: WWI)
Friday, 16th August 2019
Derewo River Gold Project Update
West Wits Mining Limited (ASX:WWI) ("the Company") has signed a binding Heads of Agreement ("HOA") with TME Group Pte Ltd a Singapore Company representing Far East Venture Group ("FEVG") to facilitate the ongoing maintenance and development of the Derewo River Gold Project, Indonesia.
Under the HOA all responsibility for managing and funding the project through to feasibility will be assumed by FEVG. The HOA provides that feasibility shall be taken to have been achieved on the issue of a detailed feasibility study by an independent expert supported by relevant exploration (including as required drill results) to verify an economic mineral resource for development.
Under the HOA WWI will dilute its equity interests in PT Madinah Quarataa'n ("PTMQ"), the Derewo River Gold Project company, from the current 64% to 10%, which 10% interest will be free carried until completion of all feasibility work. This dilution of WWI's interest in PTMQ will be effected upon implementation of the HOA which is expected in the coming weeks. Following implementation of the HOA all management for the operation of the Derewo Gold Project will be the responsibility of FEVG which will hold 54% equity in the project. FEVG has a focus on investing and fundraising to develop mining assets in South East Asia. FEVG is a new enterprise started by two of the co founders of Far East Resources Fund Ltd (www.ferfund.com) to build upon their success in raising capital and developing operating mining assets in Indonesia.
In circumstances where FEVG fails to progress the project to feasibility within three years WWI at its election may call for a retransfer of its shares in PTMQ for a consideration of one dollar thereby reinstating its original equity holding at 64%. Under the HOA WWI historical loans to PTMQ shall only become repayable through profits from the project and then repayment would be limited to that proportion of profit which WWI would otherwise have been entitled to by virtue of its shareholding interest. WWI has previously written down to no value its holding in the Derewo River Gold Project.
For and on behalf of the Board
Michael Quinert
Chairman
West Wits Mining Limited
Investor Relations:
Contact Simon Whyte on: +61 459 797 101
Otherwise, for further information visit: www.westwitsmining.com
West Wits Mining Limited
ABN 89 124 894 060
Level 3, 62 Lygon Street
Carlton VIC 3053
Australia
P +61 3 8692 9049
F +61 3 8692 9040
www.westwitsmining.com
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West Wits Mining Limited published this content on 16 August 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 August 2019 00:51:08 UTC
