West Wits Mining scores US$12.5m to advance Qala Shallows to gold production

• WWI secures US$12.5m loan facility to advance near-term Qala Shallows gold mine in South Africa
• Funds will enable delivery of mining equipment, first ore production and gold pour by Q1 2026
• Additional funding of up to US$22.5m may be made available

Special Report: West Wits Mining has secured approval for a US$12.5m (AU$19m) loan facility to advance its Qala Shallows gold project in South Africa.

The facility from Nebari Natural Resources Credit Fund (Nebari) will support Stage 1 of the company’s larger Witwatersrand Basin Project (WBP).

It also safeguards existing shareholder interests while retaining optionality to access an existing ZAR875m (US$50m) South African bank facility as the company works towards the first gold pour in Q1 2026.

“Securing credit approval from Nebari, a highly experienced financier to the mining sector, for this significant financing package is a major milestone for West Wits and underscores the strong fundamentals of the Qala Shallows project,” West Wits Mining (ASX:WWI) managing director and CEO Rudi Deysel said.

“With mobilisation well underway and first gold pour targeted for Q1 2026 under the DFS execution plan, securing this funding package will provide a clear pathway to deliver on our production goals.” 

Additional funding of up to US$22.5m may be made available via two further tranches of US$12.5m (Tranche 2) and US$10.0m (Tranche 3) on the same commercial terms, offering scalability as the project advances. The dispersal of those tranches will be subject to further Nebari Investment Committee approval and additional conditions precedent being met.

Deal validates near-term gold production potential

The company says the long-term relationship with Nebari underscores the strong fundamentals of the Qala Shallows project and validates its near-term gold production potential.

“With its strong fundamentals and nearterm gold production, this partnership represents an exceptional opportunity, and we look forward to contributing to the delivery of its value,” Nebari managing director Justin Anderson said. 

Deysel said Nebari’s support validates the quality of the asset and the company’s development strategy.

“This facility has been carefully structured to protect shareholder value, while providing maximum flexibility, including the option to leverage our existing approved ZAR875m (approx. US$50m) South African bank facility if desired,” he said. 

“This financing would not only strengthen our balance sheet but also position West Wits to unlock significant near-term value as we advance towards becoming a meaningful gold producer in the Witwatersrand Basin.”

An updated DFS in July showed the Qala Shallows project alone would deliver 70,000ozpa over a 12 years at steady state with a peak funding requirement of just US$44m and low all in sustaining costs of US$1289/oz.

All up, WWI expects to produce 944,000oz over a 16.8 year mine life.

Delivering close to US$1bn in free cash, that was tabled using a gold price of just US$2850/oz, which already looks conservative compared to today’s ~US$3600/oz spot.

This article was developed in collaboration with West Wits Mining, 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.