Wia fully funded to advance Namibia project following DFS completion, MRE increase
ASX-listed Wia Gold has received firm commitments to raise A$125-million from new and existing, institutional and sophisticated investors, to fund the development of the Kokoseb gold project, in Namibia, to first gold.
The placement follows completion of the definitive feasibility study (DFS), which confirmed the robust technical and economic viability of the project.
Proceeds from the placement will be applied primarily toward further advancing Kokoseb, including pre-production capital expenditure; ongoing project studies, testwork and project development; permitting, social and environmental activities; regional exploration and project generation; and corporate costs, working capital and costs of the placement.
The placement is conditional on shareholder approval, to be sought at a general meeting of the company, expected to be held in late September or early October.
Wia on August 10 announced the results of the DFS, which included a maiden Joint Ore Reserve Committee probable ore reserve of 69.8-milion tonnes at 0.87 g/t gold for 1.95-million ounces of gold, estimated at a conservative gold price assumption of $2 600/oz.
It also estimated average gold production of about 150 000 oz/y over the first ten years for a total production of 1.84-million ounces over the 14-year mine life from an openpit mining inventory of 72.9-million tonnes at 0.87 g/t gold for 2.03-million ounces.
The DFS showed “compelling returns”, Wia said, including an internal rate of return of 41% and a payback period of 1.8 years at a gold price assumption of $3 600/oz.
Completion of the DFS paves way for the grant of a mining licence and environmental approvals, which is anticipated in the second half of this year.
Indicative terms have been agreed with Sprott Resource Lending for a project financing facility, comprising a $360-million senior secured debt facility, and a subscription of $15-million in any future equity raise, subject to customary conditions.
Therefore, the placement, together with the proposed $360-million Sprott debt facility and existing cash reserves, fully funds Kokoseb through construction to first gold production, which is targeted for the fourth quarter of 2028.
Wia on August 10 also announced an updated mineral resource estimate (MRE), increasing the total MRE by 29% to 3.78-million ounces gold, comprising 113-million tonnes at 1 g/t gold, reinforcing Kokoseb’s position as a significant undeveloped gold deposit.
Mineralisation remains open at depth along the more than 5 km strike extent of the Kokoseb mineralised system, highlighting significant potential for future resource growth.
Six diamond rigs continue to test the continuity and extent of mineralisation at depth, targeting additional underground resource growth opportunities.
“Following completion of the DFS and a 29% increase in our mineral resource, this placement, together with the proposed $360-million Sprott debt facility and existing cash reserves, completes the funding package required to advance Kokoseb through construction and into production,” Wia MD and CEO Henk Diederichs explains.
“The proceeds will be applied to pre-production capital and key workstreams that derisk project execution. The strong support from new and existing institutional and sophisticated investors reflects confidence in the quality of the project,” he adds.
