West Wits Mining Ltd has secured a credit-approved senior debt facility of up to ZAR 902.5 million (around US$50 million), which represents an important funding milestone for the development of its Qala Shallows Gold Project – part of the broader Witwatersrand Basin Project (WBP) in South Africa.
More than half project capital
The facility, jointly provided by the Industrial Development Corporation of South Africa and Absa Bank Limited, is expected to cover around 55% of the project’s capital requirement.
Finalisation of the debt package remains subject to the completion of definitive loan documentation and the satisfaction of standard conditions precedent.
The remaining capital will be funded through a mix of equity and early-stage revenues.
West Wits is targeting first gold production from Qala Shallows in the December quarter of 2025, following recent progress on site preparation, ore stockpiling and contractor mobilisation.
The company forecasts steady-state output of around 70,000 ounces per annum by 2028, based on a 2023 life-of-mine plan by Bara Consulting, which estimated an Ore Reserve of 4.03 million tonnes at 2.71 g/t for 351,424 ounces of contained gold.
In light of gold recently trading above US$3,000 per ounce – well above assumptions underpinning previous feasibility work – the company has initiated a strategic review across the WBP.
The review will examine opportunities to optimise the Qala Shallows mine plan and assess the viability of lower cut-off grades and previously excluded mining blocks.
Elsewhere in the WBP, West Wits is re-evaluating development options for the Main Reef and Bird Reef Central (BRC).
Dual gold-uranium operation
At BRC, the potential for a dual gold-uranium operation is under assessment, with exploration work underway to convert the current uranium target into a JORC-compliant Mineral Resource.
In addition, the company is reviewing refurbishment options for Shaft 6, a historic incline shaft that could provide low-cost access to high-grade remnant zones.
The company’s long-term growth plans remain centred around Project 200, a conceptual development strategy targeting 200,000 ounces of annual gold production.
The recent approval of Prospecting Right PR10730 lifted the WBP’s Mineral Resource Estimate to 5.025 million ounces at 4.66 grams per tonne, reinforcing the project’s scale potential.
During the quarter, West Wits also advanced corporate funding initiatives.
A total of 82.4 million shares were issued via the conversion of 42 convertible notes, raising A$1.05 million.
The company has since secured an interim unsecured loan of A$550,000 at 10% interest to support working capital while it works to finalise the full funding package.
At quarter-end, West Wits reported A$156,000 in cash and confirmed its funding position is expected to improve in the near term through both debt finalisation and broader capital-raising efforts.
Negotiations are reportedly advanced with an overseas fund to provide cornerstone equity support.
West Wits also continued engagement with investors and financiers through its participation in the 121 Mining Investment and Mining Indaba events in Cape Town, as well as the Bell Potter Unearthed Natural Resources Conference.
