West Wits Mining (ASX:WWI) has executed a binding term sheet with two South African investment banks, Absa Bank and Nedbank Corporate and Investment Banking, for up to R875 million ($74.44 million).
The facility, which replaces the previously existing funding arrangement with Absa Bank and the Industrial Development Corporation (IDC), aims to support production ramp up and development at Qala Shallows.
West Wits will repay the facility over 36 months following the period of facility drawdown availability, with a final maturity date of 30 June 2031.
Half of the planned gold sales through the construction period will be protected through a put option program. The program intends to allow the project full exposure to upside in the gold price.
CEO and Managing Director Rudi Deysel says the execution of a binding term sheet reflects another “important step forward” for West Wits.
“We are pleased to be working with Absa and Nedbank CIB, two highly regarded and experienced financial institutions,” Deysel says.
“Their involvement brings increased flexibility and a broader suite of banking capabilities that align well with our strategic growth objectives.
“We would also like to thank the IDC for their support throughout the earlier stages of this process and their constructive engagement with the company.”
Absa Bank and Nedbank both shared that the investment banks are proud to support West Wits on developing an asset that will “drive local job creation, economic growth, and sustainable mining in the Witwatersrand Basin”.
“Importantly, Qala Shallows represents the first new gold mine to be developed in South Africa in over 15 years, marking a significant milestone for the country’s mining sector,” the two investment banks announced in a joint statement.
“This facility reflects our continued commitment to enabling impactful, long-term investments in South Africa’s resources industry.”
West Wits Mining is an explorer, developer, and producer focused primarily on precious and base metals.
Write to Maddison Elliott at Mining.com.au
Images: West Wits Mining
