West Wits Mining Ltd (ASX:WWI, OTCQB:WMWWF) will bank ZAR 875 million (approximately US$50M, AU$76.5M) after signing definitive agreements for a senior syndicated loan facility to fund the Qala Shallows Gold Project in South Africa.
This is a significant step in the development of the first phase of the Witwatersrand Basin Project and coincides with the delivery of a 7.5-tonne underground Load-Haul-Dump (LHD) unit to the Qala Shallows site, marking the start of on-the-ground mine development works.
The development is expected to generate over 1,000 direct jobs and serve as a catalyst for regional development over the mine’s 18-year life.
“The signing of the legal agreements marks a transformative moment for West Wits. Securing this facility is the result of years of focused effort and a strong endorsement of the Qala Shallows Project by top tier South African financial institutions,” West Wits CEO Rudi Deysel said.
“Seeing our first LHD unit arrive on site is incredibly exciting. It is a tangible symbol of progress and the beginning of a new chapter as we bring the project to life.”
Senior loan facility agreement details
West Wits has executed agreements for a senior syndicated loan facility with the Industrial Development Corporation of South Africa and Absa Bank Ltd, through its Corporate and Investment Banking Division.
The facility, which will fund approximately 55% of the Qala Shallows development costs, has a 24-month drawdown period and a 36-month repayment term.
Interest is linked to the Johannesburg Interbank Average Rate (JIBAR), and 100% of mandatory hedging will be covered by put options, allowing upside exposure to gold prices.
The loan will fund development, construction, commissioning and initial operations at Qala Shallows. The remaining 45% of funding will be sourced from equity and early operational revenue.
Zwano Nxumalo, project financier at Absa Corporate and Investment Banking, said: “We’re proud to support West Wits on the Qala Shallows Gold Project — a development that will drive local job creation, economic growth, and sustainable mining in the Witwatersrand Basin. This facility reflects our continued commitment to enabling impactful, long-term investments in South Africa’s resources sector.”
Mobilisation and site activity underway
Following an A$14 million equity raise, West Wits is pressing ahead with mine development activities at Qala, after an increase in ownership of the broader Witwatersrand Basin Project (WBP) to 74%.
LHD Unit loaded for delivery to Qala Shallows marking the start of mobilisation as West Wits moves into active development.
Key work streams include the buy-back of minority interests in its South African subsidiary, an optimised Definitive Feasibility Study (DFS) reflecting stronger gold prices and improved economics, mobilisation for ore extraction at Qala Shallows, and progress on its long-term Project 200 expansion strategy.
“It is with great excitement that we kick-off the Qala Shallows Project. The West Wits team undertook extensive preparatory work to ensure that the project will be delivered as a safe, productive and within-budget operation. Service supplier agreements have now been executed with initial orders placed and the first piece of equipment to be delivered this week,” Deysel said.
“As West Wits Mining advances to becoming a gold producer, we will continue to focus on ways to realise the potential of the stunning Witwatersrand Basin Project to further grow the business we are starting.”
Key Terms of the Facility
- Borrower: West Wits MLI (Pty) Ltd, a South African subsidiary of West Wits Mining, supported by group guarantees.
- Facility Amount: ZAR 875,000,000
- (the Facility Amount was reduced from the initial credit approved ZAR 902.5M announced to the ASX on 20/02/2025 due to an adjustment for the lenders to have an equal 50:50 contribution)
- Interest: Variable rate linked to JIBAR (Johannesburg Interbank Average Rate).
- Repayment: 36 months post available drawdown phase of 24 months (5yr total tenor).
- Hedging: 100% of mandatory hedging via put options, maintaining full exposure to upside in the gold price.
Facility proceeds are strictly applied to Qala Shallows project development.