KEY POINTS
- Wia Gold has secured commitments for A$125 million to advance the Kokoseb gold project in Namibia.
- The project has a 3.78-million-ounce mineral resource, while first gold production is targeted for Q4 2028.
- A proposed $360 million Sprott debt facility, the new equity funding and existing cash are expected to fully fund Kokoseb through construction to production.
Wia Gold has secured firm commitments to raise A$125 million from institutional and sophisticated investors as it moves to develop its Kokoseb gold project in Namibia.
The funding comes shortly after the company completed a definitive feasibility study (DFS) that confirmed the project’s technical and economic viability, putting Wia in a stronger position to move Kokoseb towards construction and eventual production.
The ASX-listed gold developer said the A$125 million placement will provide funding for the next stages of development at Kokoseb.
The funds will be used mainly for pre-production capital expenditure, additional project studies and test work, development activities, permitting, environmental and social programmes, regional exploration and other corporate and working-capital requirements.
However, the placement remains subject to shareholder approval. Wia expects to seek approval at a general meeting scheduled for late September or early October 2026.
The funding announcement follows the completion of Kokoseb’s DFS, which Wia said demonstrated the project’s strong technical and financial potential.
The study established a maiden probable ore reserve of 69.8 million tonnes grading 0.87 grams of gold per tonne, containing approximately 1.95 million ounces of gold.
The company also estimated that the proposed openpit operation could produce an average of about 150,000 ounces of gold annually during its first 10 years.
Over the projected 14-year mine life, total production is expected to reach approximately 1.84 million ounces from an openpit mining inventory of 72.9 million tonnes grading 0.87 grams per tonne for 2.03 million ounces of gold.
Project expected to deliver strong returns
The DFS indicated that Kokoseb could generate attractive returns for investors, based on the assumptions used in the study.
At a gold price of $3,600 per ounce, the project is projected to achieve an internal rate of return of 41%, while the expected payback period is only 1.8 years.
The company used a more conservative gold price assumption of $2,600 per ounce in estimating the 1.95-million-ounce probable ore reserve.
The completion of the DFS also clears an important stage in the development process, with Wia expecting the mining licence and environmental approvals to be granted in the second half of 2026.
Beyond the A$125 million equity placement, Wia has reached indicative terms with Sprott Resource Lending for a proposed project financing package.
The proposed facility includes $360 million in senior secured debt and a commitment to subscribe $15 million in any future equity raising, subject to customary conditions.
When combined with the new equity funding and Wia’s existing cash reserves, the company says Kokoseb is fully funded through construction to first gold production. The first gold is currently targeted for the fourth quarter of 2028.
Wia’s confidence in Kokoseb has also been strengthened by an updated mineral resource estimate announced on August 10.
The updated estimate increased the project’s total mineral resource by 29% to 3.78 million ounces of gold.
The resource now stands at 113 million tonnes grading 1 gram of gold per tonne.
Wia said the increase reinforces Kokoseb’s position as a significant undeveloped gold deposit in Namibia and provides additional opportunities to expand the project’s resource base.
The company said mineralisation remains open at depth along more than 5 km of the Kokoseb mineralised system.
This creates potential for further resource growth as exploration continues.
Six diamond drilling rigs are currently operating at the project, testing the continuity and depth of the mineralisation and targeting opportunities to establish additional underground resources.
The exploration programme could potentially strengthen the project’s long-term production profile beyond the current DFS assumptions.
Wia Gold MD and CEO Henk Diederichs said the combination of the completed DFS, increased mineral resources, new equity funding, proposed Sprott financing and existing cash reserves gives the company the financial capacity needed to take Kokoseb through construction and into production.
He said the proceeds from the capital raising would be directed towards pre-production spending and other activities aimed at reducing execution risks as the project progresses.
The strong participation from new and existing institutional and sophisticated investors, he added, demonstrates confidence in the quality and prospects of Kokoseb.
