West Wits Mining Ltd (ASX:WWI, OTCQB:WMWWF) has reported June quarter progress at its Qala Shallows Gold Project in what it calls a “defining period” for the company, including securing a ZAR 875 million (US$50 million) senior syndicated loan facility and completing an updated Definitive Feasibility Study (DFS) highlighting substantially improved project economics.
In addition, mobilisation for the Qala Shallows project has commenced, with key operational and infrastructure works now under way. This includes the re-opening of the mine, the arrival of essential equipment and the execution of major supplier contracts, setting the stage for the project’s transition into active development and ore extraction.
Senior syndicated loan facility secures project funding
During the quarter, West Wits executed definitive agreements for a senior syndicated loan facility of ZAR 875 million (~USD 50 million), representing about 55% of the total funding for the Qala Shallows Gold Project.
The loan, provided by the Industrial Development Corporation of South Africa (IDC) and Absa Bank Ltd, will be drawn down in milestones, with repayments starting 24 months after the first drawdown and extending over a 36-month period. The facility is hedged through put options, offering downside protection while maintaining full upside exposure to gold prices.
Qala Shallows enters active mobilisation phase
With site preparations now under way, Qala Shallows has moved into the active mobilisation phase. The mine was officially re-opened in June 2025, and a three-month mobilisation period is in progress.
Key supplier contracts have been finalised, including partnerships with Bara Consulting and Solrock Mining Services JV for engineering and construction, Modi Mining as the appointed mining contractor, and Rham Equipment Specialised Mining Equipment for underground machinery.
Critical infrastructure work has already begun, with haulage equipment arriving on site, diesel generators installed and preparations for ore extraction under way. In addition, the first Load Haul Dumper (LHD) has been delivered, and drilling rigs are scheduled for delivery by October 2025.
Other ongoing activities include the construction of a box-cut concrete roadway, completion of electrical system designs and preparations for the underground ventilation system.
Updated DFS reveals improved project economics
An updated version of the 2023 Definitive Feasibility Study was completed in July 2025, reflecting significantly improved project economics driven by higher gold prices and updated operational costs. Key outcomes from the revised DFS include:
- Free Cashflow: US$983 million, an 88% increase from the previous estimate
- Post-tax NPV7.5: US$500 million, up 97% from 2023
- Post-tax IRR: 81%, a substantial increase from the previous 53%
- Gold production: 944,000 ounces over a 16.8-year Life-of-Mine, with steady-state production of 70,000 ounces per year
- All-in sustaining cost (AISC): US$1,289 per ounce
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Base case - Key production metrics for Qala Shallows.
The updated DFS also outlines a peak funding requirement of US$44 million, with an 8-month payback period after the peak funding phase concludes. These figures highlight a strong financial outlook for the Qala Shallows project.
Corporate developments and long-term strategy
West Wits further strengthened its position during the quarter by increasing its stake in the Witwatersrand Basin Project to 74%, following the buyback of a 10% interest from a minority shareholder. The company also completed a A$14 million equity placement, which will fund ongoing operations, the buyback transaction and the updated DFS.
Looking forward, West Wits’ next key milestones include delivering the updated mineral resource estimate, securing final project financing and achieving first gold production. The company remains on track to reach steady-state production of 70,000 ounces per year, with a long-term goal of ramping up production to 200,000 ounces annually as part of its “Project 200” long-term growth strategy at the Witwatersrand Basin.
West Wits is now entering the decisive execution phase for the Qala Shallows Gold Project, with a clear path towards production and a strengthened financial position to support its continued development.