…targets first gold production in the fourth quarter of 2028
Wia Gold has raised A$125 million (about N$1.43 billion) through a share placement, completing the equity component of the funding package for the development of its Kokoseb Gold Project in north-western Namibia.
The capital raise, together with a proposed US$360 million senior secured debt facility from Sprott Resource Lending Corp and existing cash reserves, is expected to fully fund the project through construction and into production.
Wia Gold Managing Director and Chief Executive Officer Henk Diederichs said the financing follows the completion of the project’s Definitive Feasibility Study (DFS) and a significant increase in its mineral resource.
“Following completion of the DFS and a 29% increase in our Mineral Resource, this placement, together with the proposed US$360 million Sprott debt facility and existing cash reserves, completes the funding package required to advance Kokoseb through construction and into production,” Diederichs said.
The placement comprises approximately 294.1 million new fully paid ordinary shares priced at A$0.425 each. The offer attracted strong support from new and existing institutional and sophisticated investors.
According to Diederichs, the proceeds will fund pre-production capital expenditure and key activities aimed at reducing project execution risks.
“The proceeds will be applied to pre-production capital and key workstreams that de-risk project execution. The strong support from new and existing institutional and sophisticated investors reflects confidence in the quality of the project,” he said.
The placement remains subject to shareholder approval, which Wia expects to seek at a general meeting scheduled for late September or early October 2026.
Funds raised will be used to finance pre-production capital works, project development, engineering studies, permitting, environmental and social programmes, regional exploration, project generation, working capital and corporate costs.
The announcement follows Wia’s recent upgrade of the Kokoseb Mineral Resource Estimate, which increased the resource by 29% to 3.78 million ounces of gold.
The updated resource comprises 3.23 million ounces in an open-pit resource and a maiden underground Inferred Mineral Resource of 560,000 ounces.
The Definitive Feasibility Study established a maiden Probable Ore Reserve of 1.95 million ounces, based on 69.8 million tonnes grading 0.87 grams per tonne of gold.
Kokoseb is expected to have an initial mine life of 14 years, producing an average of approximately 150,000 ounces of gold a year during its first 10 years of operation.
At a base-case gold price of US$3,600 per ounce, the project is forecast to generate a post-tax net present value of US$1.2 billion, a post-tax internal rate of return of 41%, and a payback period of 1.8 years. Pre-production capital expenditure is estimated at US$475 million.
Wia has also agreed indicative terms with Sprott Resource Lending Corp for a US$360 million senior secured debt facility and a further US$15 million equity subscription.
Located about 320 kilometres from Windhoek, Kokoseb is held through a joint venture in which Wia owns 80%, while state-owned mining company Epangelo Mining holds the remaining 20% stake.
First gold production remains targeted for the fourth quarter of 2028, subject to financing, regulatory approvals and construction progressing as planned.
