West Wits Mining has secured a $12.5 million USD loan facility from Nebari to fast-track development of its Qala Shallows Gold Project in South Africa, aiming for first gold production in early 2026.
- USD 12.5 million initial loan facility approved by Nebari
- Potential for up to USD 35 million in total funding through additional tranches
- Funding supports equipment delivery and infrastructure for Qala Shallows project
- First gold pour targeted for Q1 2026 with steady-state production of 65,000 tonnes per month
- Loan terms include convertible warrants and protections for shareholder value
Funding Milestone for Qala Shallows
West Wits Mining Limited (ASX – WWI) has achieved a significant financing milestone with the Investment Committee approval of a USD 12.5 million loan facility from Nebari Natural Resources Credit Fund II LP. This funding is earmarked to accelerate the development of the Qala Shallows Gold Project, the first stage of the broader Witwatersrand Basin Project in South Africa, a region renowned for its rich gold deposits.
The loan facility, equivalent to approximately AUD 19 million, is a critical step in West Wits’ strategy to transition from exploration to production. The company is progressing rapidly towards finalising the loan documentation, with drawdown expected to support mobilisation activities including the delivery of underground mining equipment scheduled for late 2025.
Scalable Financing with Upside Potential
Beyond the initial tranche, West Wits has the option to access up to USD 22.5 million more through two additional tranches, bringing the total potential facility to USD 35 million. These subsequent tranches are subject to further approvals and conditions but offer the company flexibility to scale development as the project advances.
This staged funding approach aligns with the company’s goal of maintaining financial discipline while ensuring sufficient capital to meet project milestones. Importantly, the loan terms include protections for existing shareholders and preserve the option to utilise an existing South African bank facility worth approximately ZAR 875 million (around USD 50 million).
Project Progress and Production Outlook
Mobilisation at Qala Shallows is well underway, with hydropower drilling systems commissioned and mining equipment such as GST drill rigs and RHAM dump trucks under construction for delivery in October 2025. These assets will enable the company to ramp up to a steady-state production rate of 65,000 tonnes of ore per month.
West Wits is targeting its first gold pour in the first quarter of 2026, a milestone that would mark its emergence as a meaningful gold producer in the Witwatersrand Basin. The project benefits from extensive geological studies and a definitive feasibility study that underpin confidence in its near-term production potential.
Strategic Partnership Validates Project Quality
The partnership with Nebari, a US-based investment manager with deep mining sector expertise, underscores the strong fundamentals of the Qala Shallows project. Nebari’s Managing Director Justin Anderson highlighted the opportunity to collaborate on a project with clear value and production prospects.
West Wits’ Managing Director and CEO Rudi Deysel emphasised that securing this financing package not only strengthens the company’s balance sheet but also validates its development strategy and asset quality. The inclusion of convertible warrants as part of the loan terms reflects a balanced approach to funding that aligns interests between the company and its financiers.
Bottom Line?
With funding secured and mobilisation underway, West Wits is poised to deliver on its production ambitions, but execution risks and financing conditions remain key watchpoints.
Questions in the middle?
- Will West Wits secure the additional USD 22.5 million tranches to fully fund the project?
- How will the convertible warrants impact shareholder dilution over time?
- Can the company meet its Q1 2026 first gold pour target amid ongoing project execution challenges?