West Wits Executes ZAR 875M Senior Loan Facility with Absa and Nedbank

New Loan Facility Marks Financing Milestone

West Wits Mining Limited (ASX:WWI) has executed a binding term sheet for a ZAR 875 million (approximately USD 53 million) senior loan facility with two of South Africa’s leading banks, Absa Bank and Nedbank Corporate & Investment Banking (CIB). This new facility replaces the previously announced funding arrangement that involved Absa and the Industrial Development Corporation (IDC), providing West Wits with enhanced flexibility and access to a broader suite of banking services tailored to its growth ambitions.

CEO Rudi Deysel emphasised the significance of partnering with Absa and Nedbank CIB, highlighting their experience and the strategic fit for advancing the Qala Shallows Gold Project. The new facility is structured on similar commercial terms to the original loan but offers improved execution certainty and responsiveness to the project’s evolving funding needs.

Backing South Africa’s First New Gold Mine in Over 15 Years

The Qala Shallows project holds a special place in South Africa’s mining landscape as the first new gold mine developed in the country in more than 15 years. The joint statement from Absa and Nedbank CIB underlined their commitment to supporting initiatives that drive local job creation and economic growth within the Witwatersrand Basin, one of the world’s most prolific gold districts.

West Wits’ maiden gold pour at Qala Shallows in March 2026 marked a pivotal transition from development to production, a milestone that has been closely followed in the market given the project’s scale and potential. The company has since focused on ramping up underground development and increasing ore deliveries to the Ezulwini processing plant, aiming to reach steady-state production by 2028. This progression aligns with the company’s broader strategy to unlock value from its 7.24 million ounce global JORC resource within the Witwatersrand Basin Project. The recent maiden gold pour at Qala Shallows is a testament to the project’s advancing stage.

Loan Terms and Strategic Use of Funds

The facility amount of up to ZAR 875 million will be drawn down subject to conditions precedent, with availability until 30 June 2028 and a final maturity date set for 30 June 2031. Interest is variable, linked to the South African Rand Overnight Index Average (ZARONIA). Importantly, the loan includes a hedging requirement whereby 50% of planned gold sales during the construction phase will be protected through a put option program. This approach safeguards downside risk while preserving upside exposure to gold price increases, a nuanced strategy that reflects the project’s growth potential amid gold market volatility.

All proceeds from the loan are earmarked exclusively for the development and production ramp-up at Qala Shallows, underpinning West Wits’ transition to a gold producer. The company’s recent production ramp-up plans and capital raises have been geared toward supporting this phase, and the new loan facility further strengthens the financial foundation for these efforts.

Looking Beyond Qala Shallows

While Qala Shallows represents Stage 1 of the Witwatersrand Basin Project, West Wits is positioning itself for broader growth opportunities across the region. The company acknowledges the IDC’s prior support and remains open to future collaboration, signalling a pragmatic approach to balancing commercial bank-led financing with potential development partnerships.

As West Wits advances underground development and production, the loan facility’s flexibility and the involvement of two major South African banks may prove critical in navigating operational challenges and market dynamics. The company’s focus on steady-state operations by 2028 will be a key milestone to watch, especially in the context of evolving gold prices and regional mining sector conditions.