Wiluna is now fully funded to progress Stage 1 development and Stage 2 feasibility study for its namesake gold project after executing a US$42m ($54.6m) term loan.

The loan has a 48-month tenor with a six-month grace period before monthly repayments commence.

Importantly, it is the final piece of funding that Wiluna Mining (ASX:WMX) needed for the Stage 1 expansion that is aimed at increasing gold production to 120,000oz per annum from the end of 2021.

Stage 1 development will include the construction of a concentrator, significant underground development, and significant infrastructure improvements.

The term loan also means the company is fully funded for the Stage 2 feasibility study that is expected to be completed before the end of this year.

Wiluna’s three-year staged sulphide production plan is aimed at ultimately increasing production to 250,000oz per annum by the 2024 financial year.

“We are delighted to have finalised our term loan with Mercuria. The US$42 million loan is approximately $14 million more than we originally allowed for and means that the Stage 1 Development and Stage 2 Feasibility Study are fully funded,” executive chair Milan Jerkovic said.

“Stage 1 is progressing towards an October 2021 completion and commissioning, and our Feasibility Study is expected to be completed by the end of December 2021 which should allow us to commence Stage 2 Development in the middle of 2022.”

This article was developed in collaboration with Wiluna 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.