Wiluna secures more funds for WA gold mine

13th May 2021 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – Gold developer Wiluna Mining Corporation has secured a further $42-million in funding after financier Mercuria’s credit committee approved the Tranche 2 loan.

Wiluna on Thursday told shareholders that the Tranche 2 loan had a 48-month tenor, with a grace period of six months before monthly repayments would restart for the remaining term of the loan.

The loan interest costs would be Libor plus 9.5%, with the loan and hedging facilities secured, using the existing general security arrangements of the gold prepaid swap with Mercuria, which would end in July 2021.

The gold hedging would cover some 160 000 oz at a price that would be agreed upon at the time of the drawdown, and would mature over the tenure of the Tranche 2 loan.

“We are delighted to have received final credit approval for this $42-million facility from Mercuria as it provides full funding for our Stage 1 expansion as well as allowing us to complete the feasibility study for Stage 2,” said Wiluna executive chairperson Milan Jerkovic.

“Stage 1 is on track for October 2021 commissioning and the Stage 2 feasibility study will be completed by the end of calendar year 2021. This includes drilling to expand the Wiluna mineral resource which is expected to increase the ore reserve from 1.3-million ounces to 1.8-million ounces as part of the study, and the Stage 2 mine plan.”

The Stage 1 operation is expected to produce some 120 000 oz/y of gold, while the Stage 2 development would increase production to some 250 000 oz/y. The final size and shape of the Stage 2 development would be dependent on the results of the feasibility studies.