West Wits’ USD 12.5M Loan Facility Paves Way for First Gold in 2026
West Wits Mining has locked in a USD 12.5 million tranche of a USD 35 million loan facility from Nebari to accelerate development of its Qala Shallows Gold Project, aiming for first gold production in early 2026.
- USD 12.5 million initial loan tranche executed with Nebari
- Funding to advance Qala Shallows towards gold production
- Loan facility scalable up to USD 35 million over two years
- Warrants issued convertible to shares at a 30% premium
- First underground ore production expected October 2025
Loan Facility Secured to Fund Development
West Wits Mining Limited (ASX, WWI) has formalised a significant financing milestone by executing definitive agreements for an initial USD 12.5 million tranche of a broader USD 35 million loan facility with Nebari Natural Resources Credit Fund II LP. This funding is earmarked to accelerate the development of the Qala Shallows Gold Project, the first stage of West Wits’ larger Witwatersrand Basin Project in South Africa.
The loan facility is structured with flexibility in mind, allowing West Wits to draw down additional tranches totaling USD 22.5 million over the next two years, subject to conditions and approvals. This scalable approach aligns with the company’s phased development strategy, providing capital as project milestones are met.
Advancing Towards Production
With site mobilisation nearing completion and the delivery of underground mining equipment scheduled for early October 2025, West Wits is on track to commence underground ore production later that month. The company targets its first gold pour in the first quarter of 2026, marking a pivotal transition from developer to producer within one of the world’s most prolific gold districts.
The Qala Shallows project boasts a Definitive Feasibility Study confirming an Ore Reserve of 4.6 million tonnes at 2.60 grams per tonne, supporting a 17-year mine life with steady-state production of approximately 70,000 ounces of gold per annum over 12 years. This underpins the project’s long-term value proposition.
Loan Terms and Shareholder Considerations
The loan carries a 48-month tenor with interest calculated on the Secured Overnight Financing Rate plus an 8.5% margin, subject to a minimum rate. Importantly, the facility includes warrants convertible into West Wits shares at a 30% premium to the base price, exercisable over four years. This feature offers Nebari upside participation while preserving shareholder interests.
West Wits has structured the loan to maintain access to an existing South African bank facility worth approximately USD 50 million, ensuring financial flexibility. The company’s management highlights the partnership with Nebari as a strategic fit, combining capital support with sector expertise.
Strategic Outlook
As West Wits advances Qala Shallows towards production, the successful drawdown and deployment of this loan facility will be critical. The project’s progress and financing structure position the company to unlock value in the Witwatersrand Basin, a region with a storied gold mining history and significant resource potential.
Looking ahead, West Wits plans further feasibility studies on additional targets within its Witwatersrand Basin portfolio, signaling a broader growth trajectory beyond Qala Shallows.
Bottom Line?
West Wits’ new loan facility sets the stage for a critical production milestone, with investors watching closely as the company transitions into gold producer status.
Questions in the middle?
- When will West Wits officially draw down the initial USD 12.5 million tranche?
- How will the issuance of warrants impact West Wits’ share capital and shareholder dilution?
- What are the conditions and likelihood of accessing the additional USD 22.5 million tranches?
