Wiluna Mining to raise $53 million for WA gold project development

ASX-listed Wiluna Mining has today announced it received firm commitments for the placement of 53 million shares, price at A$1 per share.

Delphi Group – The firm’s major shareholder – 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, will also support the placement.

It will be undertaken in two tranches, with the first 34.8 million shares to be placed under the company’s existing placement capacity. 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.

“The funding announced today will allow us to maintain momentum with our development as well as maintain our aggressive reserve development and exploration drilling,” said Wiluna’s executive chairperson Milan Jerkovic.

“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 Wiluna project is on track to be commissioned in December and is targeting a full production run rate of 120 000 ounces per year by the end of the 2022 financial year. The final size and shape of the Stage 2 development will depend on the conclusions of the feasibility study, which is due in the third quarter of this Australian financial year.

@RGNonline