Wia Gold has emerged from a pivotal quarter with a 1.95Moz Probable Ore Reserve, A$229.2 million in cash and a proposed US$360 million debt facility supporting its Kokoseb development plan. Construction preparations are advancing, but lender approval, definitive financing documents and Namibian permits remain crucial hurdles before early works can begin.
- 1.95Moz Probable Ore Reserve and 14-year mine plan
- A$125m placement lifted cash to A$229.2m
- US$360m Sprott debt facility remains non-binding
- First gold targeted for Q4 2028, subject to approvals
- Underground growth remains exploration upside, not part of the DFS
Kokoseb reaches the construction preparation stage
Wia Gold Limited (ASX:WIA) is moving Kokoseb from feasibility into execution readiness, with the Namibian gold project backed by a maiden 1.95 million ounce Probable Ore Reserve and A$229.2 million in cash at 30 September. The company says its completed A$125 million placement, proposed Sprott financing and existing cash are currently expected to fund the project through construction to first gold.
The scale of the plan is substantial: the definitive feasibility study outlines a 14-year open-pit operation producing 1.836 million ounces, with average annual output of about 150,000 ounces over the first decade. At the study’s US$3,600 per ounce base-case gold price, Kokoseb carries a post-tax NPV at a 5% discount rate of US$1.214 billion, a 41% post-tax internal rate of return and a 21-month payback period. Those figures remain forecasts based on the DFS assumptions, rather than operating results.
Funding package is sizeable but not yet complete
The quarter’s financing progress materially strengthened Wia’s balance sheet. The A$125 million placement was issued at A$0.425 a share after shareholder approval, adding approximately 294.1 million ordinary shares. Wia finished the quarter with no debt, while exploration and evaluation spending reached A$7.1 million.
The more important outstanding piece is Sprott Resource Lending Corp.’s indicative, non-binding proposal for a US$360 million senior secured facility and a US$15 million equity subscription. The proposed facility would have a tenor of about six years, interest at SOFR plus a margin and capitalised interest for the first two years, with no mandatory hedging. It would also involve 67.5 million warrants over unissued shares. Financial close is targeted for the fourth quarter of 2026, but remains subject to due diligence, final documentation, investment committee approval and the required Namibian permits.
Permits and early works define the next milestone
Wia is building the owner’s team, advancing front-end engineering and design, and preparing procurement of long-lead items. Early works are targeted for the first half of 2027, with first gold targeted for the fourth quarter of 2028, provided the company receives key approvals and completes definitive financing documentation.
The Mining Licence application submitted in October 2025 and the Environmental and Social Impact Assessment submitted in March 2026 continued through regulatory review during the quarter. Wia anticipates both the Mining Licence and Environmental Clearance Certificate by year end, although that timing is not guaranteed by the filing. Off-site infrastructure assessments are also under way.
Underground drilling adds upside outside the DFS
Exploration continues to offer a second, less-developed avenue of value. Six diamond rigs remain active, and the underground drilling results covered 33 holes and 18,476 metres, with notable intercepts including 15.5 metres at 6.53 grams per tonne gold from 499.5 metres and 20 metres at 2.70 grams per tonne from 544 metres.
Wia says the drilling supports potential growth around the Central and Southern underground zones, alongside intermediate and deep high-grade targets. It continues to cite a conceptual Underground Exploration Target of approximately 10Mt to 15Mt at 2.0 to 2.5 g/t gold, in addition to the maiden 0.56Moz underground Inferred Resource. That target is not a Mineral Resource, has not been included in the DFS reserve or production schedule, and will require further drilling and technical work over the next six to twelve months.
Seven million tonne plant remains an option, not a decision
Engineering work has identified provisions that could allow the processing plant to expand from the DFS design rate of 5.25 million tonnes per annum to about 7Mtpa. The proposed changes, including additional grinding power and larger or expandable processing infrastructure, are estimated to cost US$9.3 million, or roughly 2% of the US$475 million pre-production capital estimate.
For now, however, the project remains a 5.25Mtpa development. Wia has not completed enough work to establish whether an expansion would be achievable, and any increase would require further studies, economic evaluation, approvals, funding and board approval. The immediate test is therefore less about optional throughput than execution: whether financing closes and permits arrive in time to turn a strong DFS into a construction project.
Bottom Line?
Wia now has the cash and a credible proposed debt pathway, but Kokoseb’s schedule still turns on two external approvals: definitive Sprott financing and Namibian permits.
Questions in the middle?
- Can Wia complete the Sprott financing and secure the Mining Licence and Environmental Clearance Certificate by year end?
- Will early works begin in the first half of 2027 without a material change to the DFS capital and schedule assumptions?
- Can underground drilling convert the conceptual exploration target into a Mineral Resource without disrupting the open-pit development plan?