Wia Gold says it has assembled enough funding to develop its Kokoseb Gold Project in Namibia through construction and into production after receiving firm commitments to raise A$125 million through a share placement.
The 12 August placement adds to a proposed US$360 million senior secured debt facility from Sprott Resource Lending Corp and Wia’s existing cash reserves, which the company says completes the funding package required to take Kokoseb through construction to first gold production.
Wia managing director and chief executive Henk Diederichs said the financing follows completion of the project’s definitive feasibility study and an 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 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. We thank our shareholders for their ongoing support as we advance Kokoseb towards becoming Namibia’s next major gold mine.”
The A$125 million placement involves approximately 294.1 million new shares at A$0.425 each, with Wia saying it received firm commitments from new and existing institutional and sophisticated investors.
The offer price represents no discount to Wia’s closing share price of A$0.425 on 7 August and a 2% discount to its five-day volume-weighted average price of A$0.434.
The financing follows the release of the Kokoseb definitive feasibility study on 10 August, which estimated pre-production capital expenditure of US$475 million.
The study established a maiden Probable Ore Reserve of 69.8 million tonnes grading 0.87 grams per tonne gold for 1.95 million ounces and an initial mine life of 14 years.
Wia expects Kokoseb to produce an average of about 150,000 ounces of gold annually during the first 10 years of operation.
At the study’s base-case gold price of US$3,600 an ounce, Kokoseb has an estimated 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.
Alongside the US$360 million proposed senior secured debt facility, Wia has agreed indicative terms with Sprott for a US$15 million equity subscription.
Wia said the placement, proposed US$360 million Sprott debt facility and its existing cash reserves “fully funds Kokoseb through construction to first gold production.”
The A$125 million placement remains subject to shareholder approval, which Wia expects to seek at a general meeting in late September or early October 2026.
Proceeds from the placement are expected to be used for pre-production capital expenditure, continuing project studies and test work, project development, permitting, social and environmental activities, regional exploration and project generation, corporate costs, working capital and the costs of the placement.
Kokoseb is located about 320 kilometres by road from Windhoek and is held through a joint venture in which Wia has an 80% interest alongside Namibia’s state-owned Epangelo Mining Company.
Wia is targeting first gold production in the fourth quarter of 2028.
