Wiluna falls short on raising

Wiluna Mining is on track to collect $63.4 million in much-needed capital from shareholders for its namesake gold project, around $20 million less than it had sought to raise.

The West Perth-based business launched an entitlement offer in May chasing $84.5 million to complete development work at its Wiluna Mining operation in Western Australia’s Mid West region.

Its call for capital came after deciding to put the brakes on a planned expansion and flagging slower mining and drilling rates due to skilled labour shortages and COVID-related issues.

Shares were heavily discounted at 40 cents, a 46.3 per cent on its 30-day volume-weighted average price.

Wiluna informed the market on Friday however advising it had cleared minimum acceptances of $50 million by receiving commitments in the realm of $63.4 million.

That’s around $21.1 million short of what it had sought to raise, though Wiluna said it had received strong interest in the shortfall and would look to place the shares with broker Lazarus Corporate Finance before September 10.

Wiluna shares began trading this afternoon after entering a voluntary suspension over a month prior.

Securities were down 39.8 per cent at 1:51pm AEST to trade at 34 cents.