Wia Gold has locked in A$125 million through a placement at A$0.425 per share, completing the funding package for its Kokoseb Gold Project in Namibia. This capital raise, alongside a proposed US$360 million debt facility, sets the stage for construction and first gold production targeted in late 2028.
- A$125 million placement at last traded price
- Funding package completed with US$360 million Sprott debt facility
- Definitive Feasibility Study confirms robust economics and 14-year mine life
- First gold production targeted for Q4 2028
- Strong institutional and sophisticated investor support
Placement Completes Kokoseb Funding Package
Wia Gold Limited (ASX:WIA) has secured firm commitments for a A$125 million placement priced at A$0.425 per share, exactly matching the last traded price on 7 August 2026. This capital raise, conditional on shareholder approval expected in late September or early October, rounds out the financing needed to advance the Kokoseb Gold Project in Namibia through to first gold production.
The placement, which will issue approximately 294.1 million new shares, attracted strong demand from both new and existing institutional and sophisticated investors. It complements a proposed US$360 million senior secured debt facility with Sprott Resource Lending Corp. and the company's existing cash reserves, collectively providing full funding for construction and pre-production activities.
Robust Project Economics Back Development
This funding milestone follows the release of a Definitive Feasibility Study (DFS) that confirmed Kokoseb's strong technical and economic credentials. The DFS outlined a maiden Probable Ore Reserve of 1.95 million ounces of gold at a grade of 0.87 g/t, supporting an initial 14-year mine life with average annual production of approximately 150,000 ounces over the first decade.
At a base case gold price of US$3,600 per ounce, the project delivers a post-tax net present value (NPV5%) of US$1.2 billion (A$1.7 billion) and an internal rate of return (IRR) of 41%, with a payback period of just 1.8 years on a pre-production capital cost of US$475 million. These metrics underscore the project's potential as Namibia's next major gold mine.
Use of Funds and Development Timeline
Proceeds from the placement will primarily fund pre-production capital expenditure, ongoing project studies and test work, permitting and environmental activities, regional exploration, and corporate costs. Wia aims to deliver first gold in the fourth quarter of 2028, marking a significant development milestone for the company.
Wia’s Managing Director and CEO, Henk Diederichs, highlighted the strong investor confidence in Kokoseb, noting that the placement, combined with the debt facility and cash reserves, completes the funding package required to progress construction and de-risk project execution. He expressed gratitude to shareholders for their ongoing support as the company advances towards production.
Strategic Positioning in Namibia’s Mining Sector
The Kokoseb Gold Project is located in Namibia’s northwest, within the Okombahe exploration licence, where Wia holds an 80% interest in joint venture with state-owned Epangelo Mining. The licence forms part of the broader Damaran Project, spanning over 2,700 square kilometres.
Recent resource updates boosted Kokoseb’s Mineral Resource Estimate by 29% to 3.78 million ounces, including a maiden underground inferred resource of 0.56 million ounces at a high grade of 2.2 g/t. This resource growth and the DFS outcomes reinforce the project’s development potential and underpin the company’s strategy to establish a long-life, economically robust gold mine.
Bottom Line?
Wia Gold’s completed funding package positions Kokoseb for construction and production, but shareholder approval and final debt facility terms remain key upcoming milestones.
Questions in the middle?
- Will shareholder approval be secured smoothly at the scheduled general meeting?
- How quickly can Wia finalise and draw down the US$360 million Sprott debt facility?
- What exploration upside remains in the broader Damaran Project beyond Kokoseb?