West Wits Mining Limited (WWI) is pleased to announce it has accepted a joint offer from a consortium comprised of Mintails Limited (MLI) and Galabyte (Pty) Limited to sell all the rights to four of its mining leases in South Africa including the West Wits Lease, West Rand Consolidated Lease, Luipaardsvlei Lease and East Champ D’Or Lease for A$9 million.
The sale price agreed is to be paid as an upfront payment of $4,000,000 on completion of due diligence (a period of 30 days due diligence has been allowed) and signing of definitive legal agreements; a first interim payment of $1,000,000 after 6 months; a second interim payment of $1,000,000 after 12 months subject to regulatory approval for transfer of the leases; and further payments totalling $3,000,000 following regulatory approval for the transfer of leases will be paid progressively based on the tonnage of ore processed by the Consortium.
The Consortium has agreed to deliver guarantees in a form reasonably satisfactory to West Wits for payment of the upfront amount of $4,000,000 (within 14 days) and for a further $2,000,000 of interim payments by completion of the due diligence period.
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