PERTH (miningweekly.com) – ASX-listed Wiluna Mining is hoping to raise A$24.55-million through a share placement and share purchase plan (SPP) to fund its gold works in Western Australia.
The company on Friday announced that it would place more than 15.77-milion shares to international and domestic institutional and professional investors, at a price of A$1.43 a share, to raise an initial A$22.55-million.
The share placement will be conducted under Wiluna’s existing placement capacity, and will not require shareholder approval.
In addition, existing and eligible shareholders would be allowed the opportunity to subscribe for up to A$30 000 worth of additional shares in an SPP, also priced at A$1.43 a share, to raise a further A$2-million.
The SPP will open on December 16 and will close on January 15.
Wiluna told shareholders that the funds raised would increase the rate of the drilling programme at the company’s Wiluna operation, in the Yilgarn Craton, to expand reserve and resources, increasing the rate and quantum of underground mine development for the sulphide development programme, as well as funding feasibility work associated with the Stage 2 expansion of the Wiluna operation to 250 000 oz/y, as well as for working capital purposes.
The Wiluna board in October this year approved the Stage 1 sulphide development at its namesake gold project.
The staged development of the sulphide operation would see Wiluna transition from its current production profile of producing some 62 000 oz/y from mining free milling ore through the current 2.1-million-tonne-a-year carbon-in-leach processing facility, to initially produce between 100 000 oz/y to 120 000 oz/y of gold and gold in concentrate.
This shift will be done using the current, recently refurbished crushing circuit, as well as the previously expanded mill circuit and a new 750 000 t/y concentrator.
Wiluna was further planning to increase production by, at a minimum, doubling the mining rate and the concentrator to produce some 250 000 oz/y of gold by the end of 2023, or early 2024.
Total costs for the project have been estimated at A$81-million, with some A$20-million already spent on the project.