High-powered supporters on board as $53 million raising backs ‘aggressive’ drilling at Wiluna Mining Centre
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Wiluna Mining Corporation has brought a string of high powered supporters on board in a $53 million placement to back an aggressive gold drilling campaign at its Wiluna mining centre.
Gold executive Vladislav Sviblov has joined forces with the company with a $15 million investment that will make him its largest shareholder.
Meanwhile, alliance and offtake partner Polymetal, a top-10 global gold producer and specialist in processing the refractory ores that make up a large portion of the 4.51Moz Wiluna resource, will take a $7 million stake.
The fresh injection of capital will help Wiluna Mining Corporation (ASX:WMC) keep the drill rigs turning at pace while it pushes ahead with expansion plans at the WA gold mining operation.
The company intends to hit a run rate of 120,000ozpa by the end of FY2022, with a Stage 1 expansion on track to be commissioned by the end of 2021.
A feasibility study into a larger Stage 2 expansion is due in the March quarter.
The capital raising will provide funds for these initiatives, repay finance facilities, support existing operations and processing infrastructure without having to slow the aggressive pace of exploration and ore reserve drilling.
As well as the new investment from Sviblov and Polymetal, Wiluna’s largest shareholder Delphi Group will subscribe for 17.85 million shares at the $1 offer price to maintain its 34.6% stake in WMC, subject to shareholder approval.
WMC executive chairman Milan Jerkovic has also maintained his skin in the game by supporting the raising, also subject to shareholder approval, while raise manager Arlington Group Asset Management and lead broker Simon Catt have agreed to subscribe for $1 million in shares.
“We are delighted that our existing shareholders, in particular the Delphi Group, continued their ongoing support. It is also pleasing to welcome our significant shareholder Mr Vladislav Sviblov to the register,” Jerkovic said.
The raising comes with WMC on the cusp of delivering the new concentrator at the Wiluna Mining Centre and shortly after releasing an updated resource of 4.51Moz at 3.90g/t.
That number included a 28% increase in measured and indicated resources of 2.73Moz at 4.46g/t, and a high grade component of 3.11Moz at 5.81g/t using a 3.5g/t cut-off.
A new ore reserve is due in March 2022, ahead of commercial production from underground sulphide mining next year.
“Having announced our updated resources and with commissioning of the new concentrator being imminent we continue progress towards achieving commercial production from our Stage 1 development by the end of this financial year,” Jerkovic said.
“We are also on track to complete the feasibility study for Stage 2 development in the third quarter of this financial year. The funding announced today will allow us to maintain momentum with our development as well as maintain our aggressive reserve development and exploration drilling.
“We are also pleased that our alliance partner Polymetal has joined our register as a shareholder. We have an exciting future ahead of us and expect our current and new shareholders to be rewarded for their support as we execute and deliver on our development and exploration plans.”
This article was developed in collaboration with Wiluna Mining Corporation, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.