West Wits Mining has locked in a R875 million (~USD 53 million) senior loan facility, receiving an initial R339 million drawdown that fully funds its Qala Shallows project through to steady-state gold production of 70,000 ounces per annum.
- R875M senior loan facility financial close achieved
- First drawdown of R339M (~USD 20.5M) received
- Funding fully supports Qala Shallows to steady-state production
- Accelerated surface and underground development underway
- New plant and equipment deliveries scheduled for Q3 2026
Financial Close Unlocks Major Funding Milestone
West Wits Mining Limited (ASX:WWI) has reached a key turning point by achieving financial close on a R875 million (~USD 53 million) senior loan facility with South African banks Absa and Nedbank CIB. The company has drawn down the first tranche of R339 million (~USD 20.5 million), marking a significant de-risking of its Qala Shallows Gold Project.
This injection of capital fully finances the project through to steady-state production, targeting 70,000 ounces of gold annually. The Definitive Feasibility Study (DFS) underpinning the project forecasts a post-tax net present value of USD 500 million and an 81% internal rate of return at a gold price of USD 2,850 per ounce, illustrating the project's robust economics.
Accelerated Development and Infrastructure Expansion
The initial drawdown is already enabling West Wits to accelerate both surface and underground development activities. Key near-term deliverables include construction of a pollution control dam and haulage road, with potable water infrastructure scheduled for connection to mains supply by Q4 2026. These infrastructure upgrades are critical for supporting increased mining activity and environmental management.
On the operational front, the company plans to expand its fleet with new equipment deliveries in Q3 2026, including an underground roof bolter, an additional 30-tonne underground dump truck, and two diesel generators. These generators will provide backup power once the project connects to the grid later in the year, enhancing operational resilience.
Ore Delivery and Production Ramp-Up
West Wits is progressing ramp-up efforts at the recently opened two-level underground mine, focusing on vamping and slyping operations to open new ore access areas. This supports the planned increase in ore deliveries to Sibanye-Stillwater’s Ezulwini processing plant, a key off-take partner.
The advancement of the main decline is unlocking additional mining zones, enabling higher ore throughput aligned with the company’s goal of sustaining 70,000 ounces per annum over a 12-year mine life. This steady-state production target is a cornerstone of the Qala Shallows DFS and central to West Wits’ growth strategy.
Strategic Support and Project Outlook
West Wits was advised on the debt transaction by Andre Peers Consulting Limited and legal counsel Alchemy Law, reflecting a well-structured financing process. The company’s Managing Director and CEO, Rudi Deysel, approved the release of this funding milestone, underscoring management’s confidence in delivering on the project’s potential.
The Witwatersrand Basin project, where Qala Shallows is located, remains one of the world’s richest gold regions, with a 7.24 million-ounce resource at an average grade of 4.0 grams per tonne. This latest funding round positions West Wits to capitalise on this legacy, advancing the first new underground gold mine in South Africa in over 15 years.
Bottom Line?
With full funding secured, West Wits is poised to accelerate its Qala Shallows development, but execution on infrastructure and ramp-up milestones will be critical to translate this capital into steady gold production.
Questions in the middle?
- How will West Wits manage operational risks during the accelerated development phase?
- What impact will grid power connection in Q4 2026 have on cost and reliability?
- Can ore delivery volumes to Ezulwini processing plant scale as planned to meet production targets?