ASX-listed West Wits Mining has executed definitive legal agreements for a senior syndicated loan facility of up to R875-million to fund the development of the Qala Shallows gold project, the first phase of its Witwatersrand Basin project in South Africa.

The facility is jointly provided by the Industrial Development Corporation of South Africa Limited and Absa Bank, acting through its Corporate and Investment Banking (CIB) division.

West Wits says the facility will deliver about 55% of total project funding for the Qala Shallows project, with the remaining 45% covered through equity contributions and early operational revenues.

Funds from the facility, once drawn down, will be used to advance the development, construction, commissioning and initial operations of Qala Shallows.

The facility is proposed to be progressively drawn down upon satisfaction of agreed conditions precedent and repayment will begin 24 months post initial drawdown, over a 36-month period.

West Wits says this transaction underscores the lenders’ commitment to supporting sustainable mining and socioeconomic growth in the region.

The development is expected to generate over 1 000 direct jobs and serve as a catalyst for regional development over the mine’s 18-year life.

“We’re proud to support West Wits on the Qala Shallows gold project – a development that will drive local job creation, economic growth and sustainable mining in the Witwatersrand basin.

“This facility reflects our continued commitment to enabling impactful, long-term investments in South Africa’s resources sector,” says Absa CIB project financier Zwano Nxumalo.

Meanwhile, having secured recent funding under the A$14-million equity placement, the company has begun mobilisation for pre-production works.

West Wits notes that mobilisation efforts at Qala Shallows are in full swing, marking the official transition from planning to implementation.

The company says critical infrastructure is complete and all necessary permits, as well as power and water supply, are in place. Key contracts have been finalised and are being executed, with pre-production works well under way.

Moreover, West Wits expresses that a major milestone was achieved with the purchase of the first 7.5 t underground load-haul-dump (LHD) unit, which was loaded for delivery to the Qala Shallows site on June 30, signalling the movement of key equipment into position.

The mining contractor, Modi Mining, has been engaged and key personnel hires have been completed, setting the stage for sustained construction and operational ramp-up in the coming months.

“The signing of the legal agreements marks a transformative moment for West Wits. Securing this facility is the result of years of focused effort and a strong endorsement of the Qala Shallows project by top tier South African financial institutions.

“Seeing our first LHD unit arrive on site is incredibly exciting. It is a tangible symbol of progress and the beginning of a new chapter as we bring the project to life,” says West Wits CEO Rudi Deysel.