Funding Update for Wiluna Stage1 Development
Firm commitments for approximately $7.5 million have been received in relation to a placement at $1.00 per share ("Placement") to sophisticated investors under the Company's existing placement capacity (7,419,708 shares pursuant to ASX Listing Rule 7.1 and 50,144 shares pursuant to ASX Listing Rule 7.1A). A potential further amount of up to $31.5 million will be raised under a one (1) for four (4) Non-Renounceable Entitlement Issue ("Entitlement Issue" or "Offer") at $1.00 per share.
Furthermore, the Company has received intentions to participate for approximately $14 million relating to the Entitlement Issue by its major shareholders and Executive Chair, Milan Jerkovic.
Assuming the full amount of funds are raised (including the Tranche 2 debt funding), combined with the Company's operating cash flows, the use of funds will be as follows:
- Construction and commissioning of Stage 1 concentrator and associated mine development (to reach 120kozpa production);
- fund feasibility work associated with the staged Development Program to achieve circa 250kozpa gold production and associated drilling;
- support Tranche 2 Mercuria debt funding completion; and,
- general working capital.
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About Wiluna Mining Corporation Ltd
Wiluna Mining Corporation (ASX:WMC) (OTCMKTS:WMXCF) is a Perth based, ASX listed gold mining company that controls over 1,600 square kilometres of the Yilgarn Craton in the Northern Goldfields of WA. The Yilgarn Craton has a historic and current gold endowment of over 380 million ounces, making it one of most prolific gold regions in the world. The Company owns 100% of the Wiluna Gold Operation which has a defined resource of 8.04M oz at 1.67 g/t au. In May 2019, a new highly skilled management team took control of the Company with a clear plan to leverage the Wiluna Gold Operation's multi-million-ounce potential.
Wiluna Mining Corporation Ltd