24 Mar Wiluna Mining lines up funding to advance gold mine development
Republished from Stockhead.com.au
Gold company Wiluna Mining has already received investor commitments for $21.5m as part of an $80m funding package to develop stage one of its new WA gold mine.
Wiluna Mining Corporation (ASX:WMX) will use the new investment funding to build and commission a concentrator at its Wiluna Mining Centre operation in WA to produce 120,000 ounces of gold per year from the end of 2021.
Under the company’s three-year staged production plan, Wiluna Mining started producing gold ore last year at a rate of 60,000 ounces per year and expected to reach full production of 250,000 ounces per year by the 2024 financial year.
The company has 1,600sqkm of exploration tenements in WA’s Yilgarn Craton and its Wiluna gold operation is the 7th largest gold district under single ownership in Australia.
Wiluna Mining will also fund a feasibility study to increase Wiluna’s production to 250,000 ounces per year of gold and associated drilling and use some proceeds for working capital.
A contribution will be made to updating Wiluna Mining’s reserves for stage two of its development plan to lift production further.
“It is envisaged that the Stage 2 feasibility study will see an increase in reserves of approximately 500,000 ounces and support an increase in concentrator output from 750,000 ounces per year to 1.5 million ounces per year, and in turn reach gold production of around 250,000 ounces per year,” said the company.
Major shareholders on board
Major shareholders including Wiluna Mining executive chairman, Milan Jerkovic, have indicated their intention to take up their entitlements for a combined amount of approximately $14m.
A non-renounceable entitlement issue to existing shareholders of one new share for every four shares already held at a price of $1 per share will raise up to $31.5m.
And a share placement to sophisticated investors at a price of $1 per share is expected to raise $7.5m after the company received firm commitments for this amount.
The company is also seeking to draw on its existing financing facility with Mercuria Energy Trading to an additional amount of $40m to contribute to the financing of Wiluna’s stage one development.
An indicative, non-binding term sheet is being progressed with Mercuria Energy Trading with the intention for financial completion subject to certain conditions and approvals.
The total funding package for the company’s stage one development at Wiluna will amount to $80m.
Wiluna Mining’s number of issued shares will increase to 157.7m following the completion of the entitlement issue and share placement from 118.7m currently.
Read the article on Stockhead.com.au
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