Perth, Australia -
Wiluna Mining Corp. Limited (ASX:WMX) (NZ3.F) (OTCMKTS:WMXCF) is pleased to announce that the final conditions and documentation for the US$42 million Term Loan agreement have been completed and executed. The full US$42 million in funds are now available for drawdown.
As previously announced on 13 May 2021, the Term Loan has a 48-month tenor, with a grace period of 6 months followed by equal monthly repayments thereafter. The interest rate is LIBOR + 9.5%. The gold hedging contracts are for 159,000oz at a price of US$1,820.30/oz (after all costs), commencing in December 2021 with maturity and over the remaining tenor of the Term Loan. The Term Loan and hedging program are secured under a general security arrangement.
This Term Loan is the final piece of funding for the Company's Stage 1 Development, which is occurring concurrently and due to be completed in October 2021. The Stage 1 Development will include the construction of a concentrator, significant underground development, and significant infrastructure improvements. At the conclusion of the Stage 1 Development and following ramp up, the Company expects to be producing approximately 120,000oz of gold per annum in concentrate and gold dore.
The Term Loan also means that the Stage 2 Feasibility Study is fully funded and is expected to be completed by the end of December 2021.
Wiluna Mining Executive Chair, Milan Jerkovic, commented:
"We are delighted to have finalised our Term Loan with Mercuria. The US$42 million loan is approximately A$14 million more than we originally allowed for and means that the Stage 1 Development and Stage 2 Feasibility Study are fully funded.
We thank Mercuria for their ongoing support and are proud to be associated with a global, respected counter party of their calibre.
Stage 1 is progressing towards an October 2021 completion and commissioning, and our Feasibility Study are expected to be completed by the end of December 2021 which should allow us to commence Stage 2 Development in the middle of 2022".
About Wiluna Mining Corporation Ltd:
Wiluna Mining Corp. (ASX:WMX) (OTCMKTS:WMXCF) is a Perth based, ASX listed gold mining company that controls over 1,600 square kilometres of the Yilgarn Craton in the Northern Goldfields of WA. The Yilgarn Craton has a historic and current gold endowment of over 380 million ounces, making it one of most prolific gold regions in the world. The Company owns 100% of the Wiluna Gold Operation which has a defined resource of 8.04M oz at 1.67 g/t au. In May 2019, a new highly skilled management team took control of the Company with a clear plan to leverage the Wiluna Gold Operation's multi-million-ounce potential.
Source:
Wiluna Mining Corp. Ltd
Contact:
Milan Jerkovic Executive Chair +61 8 9322 6418 Jim Malone General Manager Investor Relations +61 419 537 714 Dannika Warburton Media & Communications +61 401 094 261
