West Wits secures $62mn financing package for South African gold project

About this update from West Wits Mining Limited

West Wits Mining (ASX: WWI; OTCQB: WMWWF), an Australia -listed gold developer focused on South Africa's Witwatersrand Basin , has completed a ZAR1.115bn ( $62mn ) financing package for its Qala Shallows Gold Project , clearing a key hurdle as the company ramps up production. The financing package, arranged by Absa Group Ltd (JSE: ABG) and Nedbank Group Ltd (JSE: NED) through its Corporate and Investment Banking division, comprises a ZAR875mn ( $48.7mn ) senior loan facility, a ZAR150mn ( $8.3mn ) working capital facility and a ZAR90mn ( $5.0mn ) cost overrun debt facility. The agreements complete the funding structure for the first phase of the company's Witwatersrand Basin Project . West Wits said the additional facilities provide operational flexibility and reduce execution risks as the project moves towards steady-state production of approximately 70,000 ounces of gold per year from the fourth quarter of 2028. The company began producing gold in March 2026 , with its first pour completed at Sibanye-Stillwater's (JSE: SSW; NYSE: SBSW) Ezulwini processing plant. 'The execution of all three facility agreements marks the completion of our project finance package and a significant step forward in the delivery of Qala Shallows,' chief executive and managing director Rudi Deysel said. 'The Senior Loan Facility, announced in May-26, provides the core capital backbone. The Working Capital Facility and Cost Overrun Debt Facility now provide the commercial flexibility any operating mine requires — ensuring we can efficiently manage our working capital cycle and maintain financial resilience through the ramp-up phase.' 'With our funding structure complete and gold production already underway, the focus is entirely on disciplined operational delivery — advancing underground development, increasing ore delivery rates to the Ezulwini processing plant, and building toward steady-state production,' Deysel added. The working capital facility is structured as a revolving credit line that allows the company to borrow against verified gold sales invoices issued to Sibanye-Stillwater , while the cost overrun facility provides contingency funding during construction and ramp-up. Both facilities are linked to variable South African interest rates. Qala Shallows is the first stage of the broader Witwatersrand Basin Project , which hosts a JORC-compliant mineral resource estimate of 7.24mn ounces grading 4.0 grams per tonne. According to a definitive feasibility study, the project has a post-tax net present value of $500mn based on a gold price of $2,850 per ounce and an expected mine life of 16.8 years. West Wits said key milestones over the next two years include continued underground development, increasing ore deliveries to the Ezulwini plant, the establishment of a grid power connection targeted for the fourth quarter of 2026 and advancement of the company's Project 200 study, which aims to increase annual production to around 200,000 ounces. © 2026 bne IntelliNews, source Magazine

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