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West Wits Mining secures A$96.7 million loan package for South African gold project
West Wits Mining has finalized loan agreements totaling A$96.7 million with two South African banks to fund development of the Qala Shallows gold mine. The financing covers a senior loan, working capital facility, and cost overrun buffer.
The Sydney Morning HeraldAudio version
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West Wits Mining has executed definitive loan agreements for a ZAR1.115 billion (A$96.7 million) finance package to fund its Qala Shallows gold project in South Africa. The package includes a $75.8 million senior loan, a $13.1 million revolving working capital facility, and a $7.8 million cost overrun debt facility.
The company said the facilities complete its project finance pathway and remove a key execution risk. The working capital and cost overrun facilities are intended to provide operating flexibility without additional equity raises.
Production timeline and milestones West Wits Mining reported first ore from Qala Shallows in October 2025 and a maiden gold pour in March 2026. In May 2026 the underground decline reached the 2-level mining horizon, providing access to higher-grade areas.
The company targets steady-state production of 70,000 ounces of gold per year starting in late 2028. Qala Shallows is the first stage of a larger Witwatersrand Basin project that holds a reported mineral resource of 7.24 million ounces at 4 grams per tonne.
Next development phase A scoping study called Project 200 is examining expansion options that could raise annual output to 200,000 ounces. The company said planning for stage two is already underway. Absa Bank and Nedbank CIB provided the financing. In a joint statement last month the banks noted that Qala Shallows represents the first new gold mine developed in South Africa in over 15 years.
