New Funding For Approximately A$80 million For WA Gold Project
Wiluna Mining Corporation Limited (ASX:WMX) has progressed its funding package which, if completed in full, will amount to approximately A$80 million.
Once completed this will fully fund the Stage 1 Development Plan concentrator and mine development to commissioning, as well as completing the feasibility study, associated drilling, and updated Reserves for Stage 2 of the Development Plan.
It is envisaged that the Stage 2 feasibility study will see an increase in Reserves of approximately 500koz and support an increase in the concentrator output from 750ktpa to 1.5Mtpa, and in-turn reach gold production of circa 250kozpa.
Firm commitments for approximately A$7.5 million have been received in relation to a placement to sophisticated investors. A potential further amount of up to A$31.5 million will be raised under a one for four Non-Renounceable Entitlement Issue,
Furthermore, the company has received intentions to participate for approximately A$14 million relating to the Entitlement Issue by its major shareholders and Executive Chair, Milan Jerkovic.
Assuming the full amount of funds are raised (including the Tranche 2 debt funding), combined with the company’s operating cash flows, the use of funds will be as follows1:
- Construction and commissioning of Stage 1 concentrator and associated mine development (to reach 120kozpa production);
- fund feasibility work associated with the staged Development Program to achieve circa 250kozpa gold production and associated drilling;
- support Tranche 2 Mercuria debt funding completion; and,
- general working capital.
