Wiluna Mining Corporation has kicked off its expansion plans at the Wiluna gold mine in Western Australia, after $93 million of equity and debt funding was secured to double the mine’s production rate.
With more than 10 million ounces of gold beneath the surface, Wiluna is the seventh-largest operation in Australia.
The funding will facilitate multiple facets of growth at the site, with the first to be development and construction of the underground mine.
The $93 million was comprised of $54 million in a term loan with Mercuria, plus a $31.5 entitlement issue, and a $7.5 million placement to willing investors.
Wiluna Mining executive chair Milan Jerkovic said the loan and offers had the company well placed to progress at Wiluna.
“We are fully funded for stage one and the stage two feasibility study. Stage one is expected to be in commercial production in 2022,” Jerkovic said.
The completion of these initial stages should see the mine increase production from 60,000 ounces per year to 120,000 ounces per year.
Subsequent steps, including further construction and commissioning, will aim to increase the production rate out to around 250,000 ounces per year – more than four times the current rate.
“Pending a successful outcome of the stage-two feasibility study, stage-two development will commence by the middle of 2022,” Jerkovic said.
“At commercial production, stage two will make Wiluna one of the larger gold mines in Australia. The differentiating factor of Wiluna Mining is its operating cash flows, while still boasting a prosperous three-year development program and outstanding exploration potential.”
The site is surrounded by multiple million-ounce mines allowing Wiluna to take advantage of high-class infrastructure.
The surrounding operations include BHP’s Mount Keith nickel mine, Northern Star’s Super Pit and Yandal operations, and further north at Rio Tinto’s iron ore hub.