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West Wits Mining on Monday issued a drawdown notice for the first tranche of a $12.5-million loan facility to advance the development of Qala Shallows, the promising project that is bringing gold mining back to within 15 km of the central business district of Johannesburg, the Golden City.
The ASX-listed West Wits has satisfied all conditions precedent for the first tranche from Nebari Natural Resources Credit Fund II LP and the initial drawdown expected on Tuesday, November 18.
The $12.5-million represents the first of up to three Nebari tranches, from which West Wits will be able to absorb a further $22.5-million.
Once received, the funds will be used to secure Qala Shallows' first gold pour in March.
This first development funding serviced by debt provides the capital to continue progressing Qala Shallows while reinforcing the quality of this asset and the ability of West Wits to transition from developer to producer.
Quite remarkably, this gold ore is arising from an untouched block of virgin Qala Shallows' reef. Qala, which is Zulu for 'start', is signalling that there is still much more to come and 'shallows' points to the project's relatively shallow 800 m depth.
A 30 000 t ore stockpile by the end of the first quarter of 2026 will ensure a consistent supply of ore to the Ezulwini processing plant 40 km away, which is part of a toll treatment agreement already done and dusted with precious metals major Sibanye-Stillwater, Ezulwini's owner.
"The facility's flexible structure provides a strong funding base as we continue to advance this project to first gold pour and production ramp-up in early 2026 and beyond," West Wits CEO Rudi Deysel pointed out in a release to Mining Weekly.
Nebari MD Justin Anderson described the first tranche as representing "an important milestone in advancing the Qala Shallows development", while adding that Nebari was "looking forward to continuing our support as West Wits progresses towards production".
As part of South Africa's Central Rand Goldfield, West Wits' Witwatersrand Basin project is gifted with 5.025-million ounces of gold at 4.66 g/t, within an endowment that has given the world more than a fifth of its gold.
Qala Shallows is the first phase of the larger Witwatersrand Basin project that is sequentially targeting the Kimberley, Main and Bird reef outcrops, and which is poised to turn West Wits into a long-term gold producer, with average steady state annual run-of-mine production of 65 000 oz for 25 years.
West Wits has prepared all operational procedures and health and safety standards across all disciplines to ensure safe, productive, and efficient mining operations.
A credit-approved term sheet for a senior debt syndicated loan facility of up to R902.5-million ($50-million) has also been secured from South Africa's Absa bank and the State-owned Industrial Development Corporation of South Africa.