West Wits Mining sells Australia project to Aventine Resources to focus on South Africa

About this update from West Wits Mining Limited

West Wits Mining Ltd (ASX:WWI), an Australia-listed gold developer focused on South Africa, has agreed to sell its Mt Cecelia project in Western Australia to Aventine Resources, an emerging gold and copper exploration company, as it sharpens its focus on production growth. The divestment marks a strategic shift by West Wits to concentrate capital and operational resources on its Qala Shallows project in South Africa, part of its broader Witwatersrand Basin portfolio. CEO Rudi Deysel said the transaction delivers both immediate and potential future value for shareholders, while maintaining exposure to exploration upside through equity participation and a royalty structure. “The divestment of the Mt Cecelia Project represents a strategically compelling outcome for West Wits shareholders. The transaction structure delivers immediate and potential future value, while preserving meaningful exposure to exploration success through equity participation and a royalty entitlement,” he said. “It also enables the Company to focus its capital and operational efforts on advancing the Qala Shallows Project and unlocking the broader potential of our Witwatersrand Basin portfolio.” Under the terms of the agreement, Aventine will issue fully paid ordinary shares to West Wits valued at $2mn as initial consideration, aligning the seller with the buyer’s future exploration success. Additional deferred consideration of up to $1mn—payable in cash or 5mn Aventine shares within five years—is contingent on the definition of a Joint Ore Reserves Committee (JORC)-compliant mineral resource of 500,000 ounces at a minimum grade of 0.5 grams per tonne. West Wits will also retain a 1% net smelter return royalty on all production from Mt Cecelia, with Aventine holding an option to buy back 50% of the royalty for $2mn. The company said the structure allows it to crystallise value from a non-core asset while preserving meaningful upside if exploration at Mt Cecelia proves successful. Separately, West Wits reported progress at its Qala Shallows project, where underground development and ore delivery are increasing following the maiden gold pour in March. The company expects production to ramp up steadily over a two-year period toward a target of 70,000 ounces per year, marking a transition from developer to producer. Deysel said the immediate priority is to convert early production into con...

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