West Wits Mining Ltd (ASX:WWI, OTCQB:WMWWF) has executed definitive agreements for the first US$12.5 million tranche of a loan facility with US-based Nebari Natural Resources Credit Fund II LP, securing the critical development capital needed to bring the Qala Shallows Gold Project in South Africa into production.
The facility, which can scale up to US$35 million across three tranches, will be drawn in stages subject to approvals and conditions precedent. Proceeds will fund mine development, operating costs, financing and working capital, placing the company on a fully funded pathway to first gold.
Funding structure and flexibility
The Nebari facility provides US$12.5 million (A$19.1 million) upfront, with the option to access a further US$22.5 million over the next two years on the same commercial terms. Importantly, West Wits has structured the deal to preserve flexibility, retaining access to an existing ZAR 875 million (~US$50 million) South African bank facility if required.
Terms include a four-year tenor, interest of SOFR (minimum 4%) plus 8.5% per annum, and warrants equivalent to 35% of the loan amount, issued at a 30% premium to base price and expiring after four years.
Milestone step toward production
Chief executive officer Rudi Deysel described the agreement as a turning point for the company.
“Finalising the agreements and securing this US$12.5 million loan with Nebari marks a major milestone for West Wits and provides the critical funding required to deliver Qala Shallows into production,” Deysel said.
“With mobilisation at site nearing completion and the first full suite of underground equipment about to arrive, we are firmly on track to extract our first ore in October and achieve first gold pour in Q1 2026,” he added. “This is a pivotal step towards establishing a long-life, steady-state gold operation within the Witwatersrand Basin, one of the world’s most renowned gold districts.”
Nebari managing director Justin Anderson added: “We are excited to partner with a strong team, company, and project, and look forward to supporting West Wits as Qala Shallows advances toward production. This is a quality opportunity, and we are pleased to play a role in bringing it into operation.”
Qala Shallows development on track
Qala Shallows represents Stage 1 of West Wits’ 5.025-million-ounce Witwatersrand Basin Project (WBP). A July definitive feasibility study confirmed ore reserves of 383,934 ounces gold, underpinning a 17-year mine life with steady-state annual production of around 70,000 ounces for 12 years.
Mine site mobilisation is nearing completion, with underground equipment delivery due in early October, enabling the start of ore production later in the month. A toll treatment agreement with Sibanye-Stillwater is already in place, allowing West Wits to deliver ore and build stockpiles ahead of processing, targeted to commence in Q1 2026.
The financing follows a A$17.5 million placement announced earlier in September, also aimed at accelerating Qala Shallows’ development.
Read more: West Wits raises A$17.5M to fast-track gold production at Qala Shallows
Together, the equity raise and Nebari loan facility position West Wits to transition from developer to producer, with scalable funding available as the project ramps up.