Final Step Towards Funding Execution Of Stage 1 Development And Stage 2 Feasibility Study
Wiluna Mining Corporation Limited (ASX:WMX) has confirmed that Credit Committee approval has been received from Mercuria for a US$42 million Term Loan. The only outstanding Conditions Precedent to drawdown is finalisation of legal documentation.
The Tranche 2 loan has a 48 month tenor, with a grace period of six months before monthly repayments commence for the remaining term of the loan. The loan interest cost will be LIBOR +9.5%. The loan and hedging facilities are secured, using the existing general security arrangements of the Gold Prepaid Swap with Mercuria which ends in July 2021.
The gold hedging contracts will be for approximately 160,000oz at a price which will be agreed at time of drawdown and will mature over the 48 month tenor of the Tranche 2 loan.
Wiluna Mining Executive Chair, Milan Jerkovic, said the gold hedging contracts are a condition of the drawdown, and are welcomed in a time of important risk management during significant levels of capital expenditure and high gold prices.
“We are delighted to have received final credit approval for this US$42 million facility from Mercuria as it provides full funding for our Stage 1 Expansion as well as allowing us to complete the Feasibility Study for Stage 2,” Mr Jerkovic said.
“Stage 1 is on track for October 2021 commissioning, and the Stage 2 Feasibility Study will be completed by the end of calendar year 2021. This includes drilling to expand the Wiluna Mineral Resources which is expected to increase the Ore Reserve from 1.3Moz to 1.8Moz as part of the Study, and the Stage 2 mine plan.
“We are delighted to continue our association with a global, respected counterparty like Mercuria.”
Founded in 2004, Mercuria is one of the largest independent energy and commodity groups in the world, bringing efficiency to the commodity value chain with cutting-edge technology and unmatched expertise and solutions.
Mercuria’s business includes trading flows, strategic assets and structuring activities that generate more than USD 110 billion in turnover. It operates from offices around the world, with a strong presence in the Americas, Asia and Europe.
Wiluna Mining Corporation is a Perth based, ASX listed gold mining company that controls over 1,600 square kilometres of the Yilgarn Craton in the Northern Goldfields of Western Australia. The company’s 100% owned Wiluna Mining Operation has 8.04 million ounces of resources and 1.4 million ounces of reserves.
