West Wits Mining Ltd (ASX:WWI, OTCQB:WMWWF) has secured investment committee approval for a US$12.5 million (A$19 million) loan facility from Nebari Natural Resources Credit Fund II LP. The loan will fund development of the Qala Shallows Gold Project, the first stage of the company’s Witwatersrand Basin Project (WBP) in South Africa.
The financing structure allows for additional funding of up to US$22.5 million through two further tranches, offering scalability as the project advances. Importantly, the loan safeguards existing shareholder interests while preserving access to an existing ZAR 875 million (approximately US$50 million) South African bank facility.
Finalising the package will support mobilisation and project execution, with first gold pour targeted for the first quarter of 2026. Nebari’s long-term partnership validates the near-term production potential of the project.
Snapshot
US$12.5M facility
- Investment Committee (IC) approval received for a US$12.5 million loan facility (A$19 million at current exchange rate) from Nebari.
- Funding will accelerate development of the Qala Shallows Gold Project (Stage 1 of the Witwatersrand Basin Project).
- Drafting of loan documents for Tranche 1 is well advanced towards execution.
Upside to A$35M
Potential for an additional US$22.5 million through two further tranches:
- Tranche 2: US$12.5 million
- Tranche 3: US$10 million
- Both tranches would be on the same commercial terms.
- Subject to further Nebari IC approval and additional conditions precedent.
Shareholder value protected
- Loan facility structured to safeguard existing shareholder interests.
- Optionality retained to access an existing ZAR 875 million (~US$50 million) South African bank facility.
First gold pour Q1 2026
- Finalising the funding package supports mobilisation and project execution timeline.
- Mining equipment delivery expected in late 2025.
- Ramp up to steady-state production of 65,000 tonnes of ore per month thereafter.
Strategic partnership
- Long-term relationship with Nebari highlights strong fundamentals of the Qala Shallows Project.
- Validates near-term gold production potential.
Loan facility terms
The approved US$12.5 million loan (Tranche 1) will be drawn in a single instalment at closing, with a four-year tenor. Interest will be charged at three-month SOFR (minimum 4%) plus 8.5% per annum, and the loan is subject to a 9% original issue discount. Repayment will be made in eight equal quarterly instalments, beginning after the 27th scheduled interest payment.
The facility includes warrants equal to 35% of the loan amount, exercisable at a 30% premium to the base price with a four-year expiry. The proceeds must be applied strictly to development of Qala Shallows. Two additional tranches — US$12.5 million and US$10 million respectively — may be drawn on the same terms subject to further Nebari approval and fulfilment of conditions precedent.
Strategic partnership with Nebari
Nebari brings extensive experience in natural resources financing, with a track record of supporting technically strong mining projects.
“Nebari is pleased to partner with West Wits in the development of the Qala Shallows Gold Project. With its strong fundamentals and near-term gold production, this partnership represents an exceptional opportunity, and we look forward to contributing to the delivery of its value,” Nebari managing director Justin Anderson said.
West Wits Managing director and CEO Rudi Deysel emphasised that the funding represents a major milestone.
“Securing credit approval from Nebari, a highly experienced financier to the mining sector, for this significant financing package is a major milestone for West Wits and underscores the strong fundamentals of the Qala Shallows project. With mobilisation well underway and first gold pour targeted for Q1 2026 under the DFS execution plan, securing this funding package will provide a clear pathway to deliver on our production goals.
"We are delighted at the prospective partnership with Nebari, whose support validates the quality of our asset and our development strategy. This facility has been carefully structured to protect shareholder value, while providing maximum flexibility, including the option to leverage our existing approved ZAR 875M (approx. USD 50M) South African bank facility if desired. This financing would not only strengthen our balance sheet but also position West Wits to unlock significant near-term value as we advance towards becoming a meaningful gold producer in the Witwatersrand Basin.”
Mobilisation progress
Mobilisation at Qala Shallows began in mid-2025, with the new facility providing essential support to continue this work. Underground mining equipment, including GST drill rigs and RHAM dump trucks, is under construction and scheduled for delivery in October 2025. This will allow ore production and stockpiling to commence ahead of the first gold pour in the first quarter of 2026.
Onsite activities include engineering, procurement and construction management for surface infrastructure, which will underpin ramp-up to steady-state production of 65,000 tonnes of ore per month. Hydropower drilling systems and newly delivered power packs are already in use, accelerating decline preparation. Cover drilling is validating ground conditions, improving confidence in the pace and reliability of underground development.