Wiluna placement to support accelerated plans

Wiluna placement to support accelerated plans

Republished from MiningNews.Net

 

The Western Australian gold miner says it has raised A$22.55 million via placement, supported by a small number of international and domestic institutional and professional investors, and it is looking for up to $2 million more via a share purchase plan.

Both raisings are priced at $1.43 per share, 2.1% off its last closing price of $1.46, and an 8.3% discount on its 10-day average stock price.

The lead manager was UK-based Arlington Group Asset Management, which also managed the-then Blackham Resources’ last $92.2 million capital push, which included a $52 million equity raising underwritten by the company’s largest shareholder Delphi Unternehmensberatung.

That raising was priced at 1c, prior to a mid-year 100:1 share consolidation.

At the time, Arlington said WA was “arguably the epicentre of a developing global exploration boom fuelled by an all-time-high Australian dollar gold price and significant new gold discoveries”.

The capital raised in the final days of 2020 is earmarked to increase the rate of reserve and resource drilling, as well as to support underground mine development for company’s new sulphide strategy, and feasibility work associated with a plan to expand the company’s namesake operation from today’s circa 60,000 ounce per annum to 250,000ozpa.

Wiluna expects to spend around $80 million over 2021 to transition the mine from oxide to sulphide ore, and develop a 100,000-120,000ozpa concentrator.

The drilling will focus on converting as much of its 8Moz resource into reserves as possible, and assessing opportunities within its recently-declared 5-7Moz exploration target.

The company claims the Wiluna mining centre can become a world-class gold hub, matching Northern Star Resources’ Jundee hub, located about 50km away.

Wiluna boss Milan Jerkovic has repeatedly called the Wiluna centre a “sleeping giant” in recent years, but the narrative has changed in recent months, off the back of some impressive hits, with the giant now said to be “awake”.

Wiluna shares up 2.7% in early trade to $1.50, its highest level since its recapitalisation in June.

At current levels the company is valued at $150 million.

Read the article on MiningNews.Net

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