Wia Gold Ltd. has secured firm commitments to raise A$125 million ($82 million) in fresh equity from institutional and sophisticated investors, fully funding the construction of its flagship Kokoseb gold project in Namibia through to commercial production.
The Australian-listed developer said the capital raise, combined with a proposed $360 million senior debt package from Sprott Resource Lending and existing cash reserves, completes the total financing package required to bring the asset into production by the fourth quarter of 2028.
Proceeds will primarily target pre-production capital expenditure, project development, permitting, and regional exploration. The placement remains subject to shareholder approval at a general meeting slated for late September or early October.
The fundraising follows the release of a definitive feasibility study (DFS) confirming the economic viability of the open-pit deposit. The study outlined a maiden probable ore reserve of 1.95 million ounces of gold at 0.87 grams per tonne. Over an initial 14-year mine life, Kokoseb is projected to produce an average of 150,000 ounces annually during its first decade.
At a base case gold price of $3,600 per ounce, the study estimates an internal rate of return of 41% and a payback period of 1.8 years.
Along with the feasibility results, Wia Gold expanded the total mineral resource estimate by 29% to 3.78 million ounces, noting that mineralization remains open at depth along a 5-kilometer strike length. Six diamond drill rigs are currently active on site testing deeper targets.
“Following completion of the DFS and a 29% increase in our mineral resource, this placement, together with the proposed $360-million Sprott debt facility and existing cash reserves, completes the funding package required to advance Kokoseb through construction and into production,” Henk Diederichs, Managing Director and Chief Executive Officer of Wia Gold, said in a statement. “The proceeds will be applied to pre-production capital and key workstreams that derisk project execution. The strong support from new and existing institutional and sophisticated investors reflects confidence in the quality of the project.”
Wia Gold expects to receive its final mining license and environmental approvals in the second half of this year.
