Wiluna Mining Raises A$180M to Restart WA Gold Operations

Wiluna Mining Corporation Ltd has initiated an initial public offering valued at A$180 million to recapitalize its balance sheet and facilitate a return to the Australian Securities Exchange. The company aims to use the proceeds to extinguish secured debt and fund technical studies required to restart its flagship gold operation in Western Australia.

Priced at A$0.65 per share, the offer is scheduled to close on October 9, with trading under the ticker WMC expected to begin on October 26. Byrnecut, a major shareholder and mining contractor, is underwriting A$50 million of the raising, signaling institutional confidence in the company’s rehabilitation following its 2022 administration.

Capital allocation for operational restart

The funds will directly support the resumption of production at the Wiluna Gold Operation, which hosts a mineral resource of 91.7 million tonnes containing 7.1 million ounces of gold. Existing infrastructure, including a 2.1-million-tonne-per-annum processing facility and a 750,000-tonne-per-annum concentrator, reduces the capital expenditure required for initial production.

Wiluna plans to execute approximately 80 kilometers of underground and 160 kilometers of surface drilling to define resources and control grades. This work underpins a strategy targeting 750,000 tonnes of annual underground production, supplemented by low-strip-ratio open pits and tailings retreatment to optimize near-term cash flows.

Improved economics from higher gold prices

Elevated bullion prices have strengthened the project’s financial viability compared to historical assessments. Previous pre-feasibility studies based on a A$2,880-per-ounce gold price estimated a pre-tax net present value of A$198.6 million, with a payback period of 5.5 years, indicating robust margins under current market conditions.

The broader tenure includes 13 priority exploration targets, with the Wiluna Central Mine Area alone hosting 6 million ounces of resource. This scale provides significant leverage for future discovery, allowing the company to expand its resource base while re-establishing operational stability on the ASX.

Resolution of legacy creditor obligations

The company’s deed of company arrangement was fully effectuated on December 31, 2025, transferring control to a new board. Wiluna subsequently paid A$39 million to the creditors' trust, resulting in participating creditors receiving full recovery of 100 cents in the dollar, thereby clearing a major liability from the balance sheet.

As reported by proactiveinvestors.com, this restructuring allows Wiluna to enter the IPO with a cleaner capital structure. The raising serves as a test of investor appetite for large-scale Australian gold redevelopment, leveraging improved macroeconomic conditions to fund the transition from administrative recovery to active production.