West Wits Mining (ASX:WWI) has received the second drawdown from its senior debt facility, fully funding the Qala Shallows Gold Project in South Africa through to steady-state production.
The company completed the second drawdown of R236 million ($20.4 million) under the R875 million Absa Bank and Nedbank senior debt facility after meeting cost-to-complete and covenant-testing requirements.
Total drawdowns now reach R575 million, with R300 million remaining available. Additional flexibility is provided by an undrawn R150 million working-capital facility, a R90 million cost-overrun debt facility, and R57 million held in a cost-overrun equity facility.
Underground development totalled 1,150m at the end of September 2026, comprising 513m of reef development and 637m of waste development.
Monthly advance rates increased from 73m in July to 183m in August and a record 200m in September. The company targets 600m per month in 2027 to support production ramp-up.
The 1 West Decline holed into the historic 2 Level area in May 2026, providing access to ore tonnes in unmined stopes with established underground infrastructure. This connection will underpin primary production from stoping, scheduled from February 2027.
Processing of on-reef development ore will continue through 2026, with gold produced to date being a by-product of mine development rather than the operation’s primary production source.
Surface infrastructure reached 61% completion at the end of September 2026. The haulage road is complete, while the pollution-control dam and permanent ore-handling facility are at advanced stages.
Critical surface infrastructure remains on track for completion in Q3 2027. Backup generators are scheduled for commissioning in October 2026, with the bulk-power connection planned for early 2027.
CEO and Managing Director Rudi Deysel says the project has advanced underground access, surface infrastructure, and funding.
“[With] the second senior debt drawdown received, the project is fully funded to steady-state production, and our development rates are building month on month,” Deysel adds.
The company maintains its production outlook of 10,000–15,000 ounces of recovered gold in 2027, 42,500 in 2028, and 70,000 in 2029. Commercial production is targeted for Q4 2027, with steady-state production of 70,000 ounces per annum in Q1 2029.
A mud rush incident at Qala Shallows in June 2026 had resulted in the death of a colleague. The company extended its condolences to his family, friends, and colleagues.
Ground and water management has since been a central focus underground, with 56 crew self-stoppages recorded between July and September 2026.
West Wits Mining is an Australian explorer, developer, and emerging gold producer advancing projects across South Africa and Western Australia.
Write to JC Villarba at Mining.com.au
Images: West Wits Mining
