Advances Gold Duke Project Towards Production with $3m Secured
Perth, Aug 5, 2025 AEST (ABN Newswire) - Western Gold Resources Limited (
ASX:WGR) (5ZN:FRA) is pleased to announce that it has received a firm commitment to enter into agreements with a number of professional and sophisticated investors who are high net worth clients of GTT Ventures Pty Ltd (the Lenders) for a secured non-converting loan facility of $3 million to advance the 100% owned Gold Duke Project.
Key Points
- Western Gold Resources has obtained a 12-month $3 million secured nonconverting loan facility to advance the 100% owned Gold Duke Project from high net worth investors.
- The non-dilutive loan funding will be used to support the planned grade control and infill drilling program at the Gold Duke Project.
- This structure of loan is in keeping with the board's objective of minimising shareholder dilution and is re-enforced with preferred mining contractor SSH Mining (SSH Group Ltd (ASX:SSH)) provision of a deferred payment facility to facilitate and commence mining operations in this non-dilutive manner.
- Grade control infill drilling follows the execution of a binding toll milling agreement at fully operational Wiluna Processing Plant.
- The Company remains confident it will commence mining operations late 4Q25.
- The Company anticipates announcing a significant improvement to the already impressive and robust project economics with the Gold Duke Project Scoping Study update expected to be announced in the coming weeks.
Use of Funds
The primary purpose of the loan is to fund the planned grade control and infill drilling program at the Gold Duke Project, as WGR advances toward gold production. This follows the execution of a binding toll milling agreement in June 2025 with a fully operational processing plant, marking a major milestone in the project's development. The loan will also provide additional working capital to support ongoing operations.
This non-dilutive funding for grade control drilling is a positive for shareholders and speaks to the quality of the Gold Duke project, which is supported with additional nondilutive funding to commence mining operations provided by our preferred mining contractor SSH Mining (SSH Group Ltd (ASX:SSH)) via a deferred payment facility.
Refer to ASX Announcement 18 June 2025 "Milling Agreement Fast Tracks Gold Duke into Production" and 15 January 2025 "Mining Contractor Selected with Deferred Payment Facility".
Western Gold Resources Limited, Managing Director Cullum Winn commented:
"The support shown for this loan facility speaks volumes to the quality of the Gold Duke project and is in keeping with our goal to ensure minimal shareholder dilution as we march toward expected commencement of mining operations in late 4Q25.
The timing is particularly favourable, coinciding with strong gold market conditions and we expect to capitalise on this environment with the release of our updated scoping study in the coming weeks."
Key Loan Details
The Loan is secured against the Gold Duke Project with a maturity term of 12 months.
Loan interest will accrue at 15% per annum compounded monthly and paid quarterly unless the Lender has elected for interest to be paid in WGR shares at a deemed price of $0.08 per share. WGR may elect to repay the Loan early after 3 months, in which case a minimum of 12 months interest must be paid to the Lender.
The Lender will receive unlisted options (Lender Options) with an exercise price of $0.15 with an expiry of 2 years. The number of Lender Options issued by WGR is dependent on the length and value of the Loan as follows:
- Full maturity term: 3 options for every $1 invested in debt (9,000,000 Options), or
- Early election term: 5.33 options for every $1 invested in debt (16,000,000 Options).
The Lender Options will be issued pursuant to the WGR's placement capacity under ASX Listing Rule 7.1.
The Company confirms the following:
- Does not consider the identity of the Lenders to be information that a reasonable person would expect to have a material effect on the price or value of the WGR's securities;
- All material information relevant to assessing the impact of this loan facility on the price or value of the WGR's securities has been included in appendix A, and is not misleading by omission.
- GWR has received a firm commitment from GTT Ventures Pty Ltd, and the Lenders are their clients. WGR has undertaken a number of successful capital raisings with GTT Ventures Pty Ltd, and all have been successfully completed once a firm committed has been received.
The Option issue and the loans agreements are not with persons in a position of influence included under listing Rule 10.11. Shareholder approval is not required.
GTT Ventures Pty Ltd has acted as the Lead Manager and will earn a 4% fee of the loan funds received and 10 million unlisted options with an exercise price of $0.15 with an expiry of 2 years.
*To view the Presentation, please visit:
https://abnnewswire.net/lnk/25O92CH6
About Western Gold Resources Limited
Western Gold Resources Limited (ASX:WGR) (FRA:5ZN) is advancing its transition from explorer to gold producer from its 100%-owned Gold Duke Project in the prolific Wiluna region of Western Australia. The project covers 25km of the under-explored Joyners Find Greenstone Belt, adjacent to the Norseman-Wiluna Belt, and hosts a JORC 2012 Mineral Resource of 293,000oz at 2.0g/t Au. Recent approvals for the Mining Proposal and a binding ore milling agreement with Wiluna Mining Corporation mark a major milestone toward near-term production.
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