Wiluna Mining Corporation Ltd (ASX:WMC, OTC:WMXCF) has received strong support for its entitlement issue, with completed applications received from shareholders amounting to A$57,327,216.
The non-renounceable pro-rata entitlement issue, which was announced to ASX on May 23, 2022, closed on Friday, June 10, 2022.
Wiluna sought to raise up to A$84.5 million via the entitlement issue comprising one share for every share held by eligible shareholders at an issue price of A$0.40 per share together with one free attaching option.
Shortfall placement
The company will endeavour to place the shortfall shares of 67,996,905 in consultation with its broker.
Thankfully, the company has received strong interest in the shortfall which it will, subject to the market, look to place in the coming weeks
Wiluna advised it has received applications for a further 15,062,500 new shares (amounting to A$6,025,000) pursuant to the shortfall.
The company will endeavour to complete the issue of the remaining shortfall securities before September 10, 2022 (being the date that is three months following the closing date).
May gold production exceeds expectations
Wiluna achieved 6,559 ounces of gold production in May 2022, ahead of expectations, at its Wiluna Mining Operation in the Western Australian Goldfields.
Of this production, 5,855 ounces comprised gold in concentrate and 704 ounces comprised gold doré.
During the month of May, Wiluna processed 66,251 tonnes at a grade of 3.46g/t, an improvement on the past 2 months.
Transforming to multi-circuit operation
The Wiluna Mining Operation is currently in development to transform Wiluna from a modest, cashflow positive producer of free milling ore via a conventional CIP plant to a multi-circuit operation producing circa 110-120kozpa once commercial production is reached.
On completion, the development plan will enable Wiluna to treat all the ore types at Wiluna through four processes, including;
- existing 2.1Mtpa CIP process plant;
- 750,000tpa flotation concentrator which is now complete, following successful commissioning in December 2021;
- gravity circuit which produces gold doré; and
- tailings retreatment plant (WilTails) which will link tailings reclaim and reslurrying (as well as flotation tailings) with the existing CIP circuit to produce gold doré.