PERTH (miningweekly.com) – Gold developer Wiluna Mining will raise A$53-million in a share placement, priced at A$1 a share.
The company on Monday announced that it had received firm commitments for the placement of 53-million shares, with the placement to be done in two tranches.
The group’s major shareholder, Delphi Group, has agreed to subscribe to 17.84-million shares in Wiluna, to maintain its 34.6% interest in the company, while the company’s second-largest shareholder, Franklin Templeton, has also shown support for the placement.
Delphi’s share subscription would be subject to shareholder approval.
The placement will be undertaken in two tranches, with the first 34.8-million shares to be placed under the company’s existing placement capacity, while the placement of the remaining 18.2-million shares will be subject to shareholder approval at a meeting scheduled for the end of December.
Proceeds from the capital raise will be used to fund pre-commercial production mining and development activities at the Wiluna gold operation, in Western Australia, as well as pre-commercial production processing and surface operation, and to fund processing infrastructure, exploration drilling and general working capital.
“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 Vladislav Spivlov to the register,” said Wiluna Mining executive chairperson Milan Jerkovic.
“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. 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.”
The Stage 1 project is on track to be commissioned in December and is targeting a full production run rate of 120 000 oz/y by the end of the 2022 financial year. The final size and shape of the Stage 2 development at the Wiluna mining operation will depend on the conclusions of the feasibility study.