West Perth-based Wiluna Mining is offering shares at more than a 40 per cent discount to raise a minimum $50 million to bring its namesake gold project up to speed.
West Perth-based Wiluna Mining Corporation is offering shares at more than a 40 per cent discount to raise a minimum $50 million to bring its namesake gold project up to speed.
Wiluna notified the ASX before market close this afternoon, confirming it was chasing at least $50 million and up to $84.5 million via a one-for-one non-renounceable entitlement issue, with shares on offer at 40 cents.
That represents a 29.2 per cent discount on its last closing price and a 46.3 per cent discount on its 30-day volume-weighted average price.
Shares will be exercisable at 60 cents and expire December 31 2024.
According to the Wiluna board, raising $50 million would mean the company can continue working towards its targeted full production rate of up to 120,000 ounces a year by the end of 2022 at the Wiluna mining operation in the Mid West.
The call for capital comes weeks 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.
Wiluna is also seeking debt for equity swap for any shortfall with certain creditors including its underground contractor Byrnecut, which have agreed to convert $13.4 million into the shortfall offer.
Wiluna executive chair Milan Jerkovic said the company had run into a number of adverse factors that had made it necessary to raise funds.
“These have included ramp up delays caused by COVID-19, and skilled labour shortages, inflationary cost pressures, the war in the Ukraine, shipping delays of key equipment and delays to concentrate sales,” Mr Jerkovic said in a statement.
“The board of Wiluna believe that once we have raised the minimum amount of $50.0 million in this capital raising, the company can continue to progress towards its targeted full production run rate from the stage one concentrator of 110,000-120,000 oz per annum by end of CY2022.”
Wiluna shares have been in a voluntary suspension since Friday.