Wiluna requests suspension extension

Wiluna underground development. Image: Wiluna Mining

The troubled Wiluna Mining Corporation has asked the ASX to keep it in voluntary suspension pending the finalisation of a recapitalisation proposal which is expected to be completed by the end of June.

The initial trading halt requested on May 6 and the current voluntary suspension requested on May 11 were granted pending an announcement regarding a proposed capital raising.

In a statement, Wiluna requested the suspension to be extended to “enable the company to manage its continuous disclosure obligations while continuing discussions with financiers regarding a proposed recapitalisation of the company”.

It reiterated that the company had been impacted by several factors outside of its control including:

  • The COVID-19 pandemic, as well as significant shortages of skilled labour in the state of Western Australia has resulted in delays to the company’s underground mining activities
  • Ongoing conflict in Ukraine which has negatively impacted and delayed the sale and monetisation of gold concentrate and Wiluna’s proposed UK listing
  • Shipping and supply/logistical constraints of critical outstanding components of the WilTails plant which has pushed commissioning of the WilTails Plant out to August

It said all those factors negatively impacted the company’s cashflows and has resulted in the requirement to raise additional capital in the near term to meet its objectives.

The company currently has cash assets of about $8 million and anticipates a net cash outflow of $24 million, after receipts from sales, will be required to normalise its creditors and receivables.

Wiluna is in the process of determining the minimum capital raising required to achieve the abovementioned normalisation of its working capital position and to meet its short-term objectives.

About Ray Chan

Editor of industrial titles and mastheads with Prime Creative Media. Publications include Rail Express and Australian Mining (web content).

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