West Wits Mining Secures ZAR 875 Million for Qala Shallows Gold Project

West Wits Mining Ltd has signed definitive agreements for a senior syndicated loan facility to fund the Qala Shallows Gold Project in South Africa, securing ZAR 875 million (approximately US$50 million, AU$76.5 million). This significant development milestone coincides with the delivery of a 7.5-tonne underground Load-Haul-Dump (LHD) unit to the Qala Shallows site, marking the start of on-the-ground mine development works. The project is expected to generate over 1,000 direct jobs and serve as a catalyst for regional development over the mine's 18-year life.

Key Takeaways:

• West Wits Mining has secured a senior syndicated loan facility of ZAR 875 million to fund the Qala Shallows Gold Project, with a 24-month drawdown period and a 36-month repayment term.
• The facility is linked to the Johannesburg Interbank Average Rate (JIBAR) and includes 100% mandatory hedging through put options, allowing for upside exposure to gold prices.
• The loan will fund approximately 55% of the Qala Shallows development costs, with the remaining 45% coming from equity and early operational revenue.
• The Qala Shallows project is expected to generate over 1,000 direct jobs and serve as a catalyst for regional development over the mine's 18-year life.
• West Wits Mining has executed agreements with the Industrial Development Corporation of South Africa and Absa Bank Ltd for the facility, reflecting a significant endorsement of the project by top-tier South African financial institutions.
• CEO Rudi Deysel stated that the signing of the agreements marks a transformative moment for West Wits, with the delivery of the LHD unit representing a tangible symbol of progress and the start of a new chapter for the project.
• Denysel also highlighted the company's focus on safety, productivity, and budget management, with extensive preparatory work undertaken to ensure the project's delivery as a safe and within-budget operation.

Statistics:

• Facility Amount: ZAR 875,000,000 (approximately US$50 million, AU$76.5 million)
• Interest Rate: Linked to the Johannesburg Interbank Average Rate (JIBAR)
• Repayment Term: 36 months post 24-month drawdown period (5-year total tenor)
• Hedging: 100% mandatory hedging through put options, allowing for upside exposure to gold prices
• Expected Job Creation: Over 1,000 direct jobs over the mine's 18-year life

Sources:

• West Wits Mining Ltd ASX Announcement
• Absa Corporate and Investment Banking Press Release
• Industrial Development Corporation of South Africa Press Release