Brought to you by COW AND BEAR
Murray Ward
West Wits Mining has hit another milestone for the company after reaching financial close and receiving seed capital for its flagship Qala Shallows, a South African gold project.
The company pocketed the first installment of ZAR339 million (A$29.9 million) from its ZAR875 million (A$77.2 million) senior loan.
Co-financed by leading tier-one lenders Absa Bank and Nedbank CIB, the capital package appears poised to reduce development risk in the company’s core assets. Management says the loan will be sufficient to fully fund operations until full production.
A recently revised feasibility study has outlined an attractive target of 70,000 ounces of gold per year over the mine’s 12-year life, boasting a present value of US$500 million (A$725 million) and an internal rate of return of 81 percent at a gold price of USD 2,415.
West Wits says the cash injection has led to immediate, high-paying jobs in underground and upscale areas. It comes hot on the heels of the company cutting a historic 2-level, untouched horizon at Qala Shallow, handing West Wits immediate access to enhanced production surfaces.
The company plans to channel the new funds directly into expanding its heavy machinery fleet and surface infrastructure program. Delivery of key new plant and equipment is scheduled for the third quarter of 2026, including an underground roof drain, an additional 30-ton underground dump truck and two permanent diesel generators.
Subsurface engineering works also include the completion of a pollution control dam, a dedicated carriageway and a water pipeline connection.
Beyond Qala Shallows, the broader Witwatersrand Basin project provides a world-class foundation for the company. Located in South Africa’s Central Rand Goldfield, the wider project area has an estimated global mineral resource of 7.24 million ounces at a grade of four grams per tonne of gold.
The Witwatersrand basin represents the largest known gold region in the world, which has historically produced more than 1.5 billion ounces – about 40 percent of the world’s total production to date.
The company’s next steps will focus on accelerating underground development to unlock deeper mining areas and increase ore delivery rates.
Underground workers have begun ramping up refining and expansion operations on the recently acquired 2 levels to unlock new ore faces. This work directly contributes to the commencement of ore shipments to Sibanye-Stillwater’s Ezulwini processing plant, ensuring a steady flow of initial production revenue.
The site will also convert to permanent grid power in the fourth quarter of 2026, with new generators moving into a backup supply role.
With major commercial banking muscle now flexed and cash hitting the ground running, West Wits has lifted its funding restrictions. The company is now well positioned to transition from a developer to a major gold producer in one of the world’s most mineral-rich regions.
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