West Wits Secures ZAR 1.115 Billion Finance Package to Advance Qala Shallows Gold Ramp-Up

Complete Financing Package Finalised for Qala Shallows

West Wits Mining Limited (ASX:WWI) has executed definitive loan agreements with Absa Bank and Nedbank CIB to secure a comprehensive ZAR 1.115 billion (approx. USD 67 million) project finance package for its Qala Shallows Gold Project. This marks a pivotal moment for the company, effectively removing a significant execution risk and paving the way for the mine’s ramp-up to steady-state production targeted at roughly 70,000 ounces of gold per annum from the fourth quarter of 2028.

The financing comprises three distinct but complementary facilities: a ZAR 875 million Senior Loan Facility, a ZAR 150 million Working Capital Facility (WCF), and a ZAR 90 million Cost Overrun Debt Facility (CODF). The senior loan, announced in May, forms the backbone of the capital structure, while the WCF and CODF provide essential operational flexibility and contingency cover during the critical ramp-up phase.

Working Capital and Cost Overrun Facilities Provide Operational Agility

The Working Capital Facility is designed to address the classic cash flow timing mismatch that emerging gold producers often face; the lag between operational expenses and receipt of cash from gold sales. By allowing drawdowns against verified sales invoices issued to Sibanye-Stillwater, the facility efficiently recycles working capital without resorting to equity dilution or stressing the senior debt line.

Meanwhile, the Cost Overrun Debt Facility acts as a financial safety net, available only after full utilisation of the senior loan and the company's own equity-funded cost overrun reserve. This contingency funding underscores the confidence of Absa and Nedbank in the Qala Shallows project, having conducted thorough independent assessments. It mitigates the risk of unexpected capital shortfalls during construction and ramp-up, with repayments aligned to operating cash flow performance.

Advancing Underground Development and Production Ramp-Up

Qala Shallows, the first new underground gold mine developed in South Africa in over 15 years, is a key part of West Wits’ Witwatersrand Basin Project (WBP). The project boasts a Global JORC Mineral Resource Estimate of 7.24 million ounces at 4.0 g/t gold and a DFS-confirmed post-tax net present value of USD 500 million at a gold price of USD 2,850 per ounce over a 16.8-year mine life.

First gold production was achieved in March 2026, with ore processing underway at Sibanye-Stillwater’s Ezulwini plant. The company is actively advancing underground development and increasing ore delivery rates as it progresses through the ramp-up phase. Grid power connection is targeted for Q4 2026 to enhance operational efficiency, while the ongoing Project 200 Scoping Study aims to explore scaling production to approximately 200,000 ounces per annum.

Financial Structure Strengthens Operational Focus

West Wits CEO Rudi Deysel emphasised that completing the full finance package allows the company to concentrate fully on disciplined operational delivery. The combination of the senior loan with the working capital and cost overrun facilities equips West Wits with the commercial flexibility needed to manage the complexities of ramping up a new underground mine.

This financing milestone not only provides the capital backbone but also reflects the tailored approach of South Africa’s leading mining financiers, Absa and Nedbank, who have structured the facilities to suit the project’s specific risk and operational profile.