West Wits banks first local funds for South African gold push
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Murray Region
West Wits Mining has achieved another corporate milestone after achieving financial close and receiving an injection of seed capital for its flagship South African gold project, Qala Shallows.
The company pocketed the first draw of ZAR339 million (A$29.9 million) from its ZAR875 million (A$77.2 million) senior credit facility.
The capital package, jointly financed by leading tier one lenders Absa Bank and Nedbank CIB, is likely to reduce development risk in the company’s core asset. Management says the loan will be sufficient to fully fund operations until stable production.
A recently revised definitive feasibility study outlined an impressive target of 70,000 ounces of gold per year over a 12-year mine life; this target has a solid net present value of US$500 million (AU$725 million) and an internal rate of return of 81 per cent at a gold price of US$2,850 (AU$4,136) per ounce.
West Wits says the cash injection triggered immediate spending and accelerated work on its underground and aboveground sites. It comes hot on the heels of the company’s intersection with the historic, pristine 2-level horizon at Qala Shallow, giving it immediate access to West Wits’ established production facets.
The company plans to direct the new funds directly towards expanding its heavy machinery fleet and surface infrastructure program. Deliveries of critical new facilities and equipment, including an underground roof slide, an additional 30-tonne underground dump truck and two permanent diesel generators, are planned for the third quarter of 2026.
Near-term surface engineering work also includes completion of a pollution control dam, a dedicated haulage road and drinking water grid connection.
Beyond Qala Shallows, the wider Witwatersrand Basin project provides a world-class base for the company. Located in South Africa’s proven Central Rand Goldfield, the wider project area hosts a significant global mineral resource estimate of 7.24 million ounces at a grade of four grams per tonne gold.
The Witwatersrand Basin represents the planet’s largest known goldfield and has historically produced more than 1.5 billion ounces; this accounts for almost 40 percent of the world’s total production to date.
The company’s next steps will focus on accelerating underground mining development to unlock deeper mining zones and increase ore delivery rates.
Underground crews have begun to accelerate cleaning and expansion operations on the newly accessible level 2 to unlock new ore deposits. This work directly supports the start of ore deliveries to Sibanye-Stillwater’s nearby Ezulwini processing plant and provides a steady stream of early production revenue.
The facility will also switch to permanent grid electricity in the fourth quarter of 2026, and the new generators will move into a backup supply role.
With its major commercial banking power now locked in and cash flowing, West Wits has effectively removed its funding hurdles. The company is now in an excellent position to transition from developer to serious gold producer in one of the most productive mining areas in the world.
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