Wia Gold Delivers US$1.2bn NPV And Agrees US$375m Financing Package For Kokoseb DFS
Wia Gold Delivers US$1.2bn NPV And Agrees US$375m Financing Package For Kokoseb DFS
Wia Gold Limited has released the definitive feasibility study for the Kokoseb Gold Project in Namibia alongside indicative project financing terms from Sprott Resource Lending Corp.
The study outlines a 5.25 million tonnes per annum open-pit operation with a maiden probable ore reserve of 69.8 million tonnes at 0.87 grams per tonne gold for 1.95 million ounces, estimated at a gold price of US$2,600 per ounce.
The mine plan targets average annual gold production of approximately 150,000 ounces over the first 10 years, delivering 1,836,000 ounces over a 14-year mine life from an open-pit inventory of 72.9 million tonnes at 0.87 grams per tonne for 2.03 million ounces. At a base-case gold price of US$3,600 per ounce, the study projects a post-tax net present value at a five per cent discount rate of US$1.2 billion, an internal rate of return of 41 per cent, and a payback period of 1.8 years. Total pre-production capital costs are estimated at US$475 million, including US$27 million for pre-production mining, a US$40 million contingency, and US$50 million for strategic water and power infrastructure. Life-of-mine C1 cash operating costs are pegged at US$1,519 per ounce, with all-in sustaining costs at US$1,696 per ounce.
In parallel with the study, Wia Gold has agreed indicative, non-binding terms with Sprott for a financing facility totalling US$375 million. The proposed package comprises a US$360 million senior secured debt facility and a US$15 million subscription in a future equity raise. The debt facility carries a six-year tenor, a SOFR-linked interest rate with capitalised interest for the first two years following closing, and no mandatory hedging requirements. Upon financial close, Wia Gold will issue Sprott with 67,500,000 warrants.
“Completion of the DFS marks a major milestone for Wia. In just over five years, Kokoseb has advanced from discovery to a development-ready gold project and one of Africa's most compelling undeveloped gold projects. The DFS delivers a maiden Ore Reserve, a robust mine plan and outstanding financial returns, providing a strong foundation for development.
This achievement reflects the dedication of our team, the expertise of our consultants and the ongoing support of our joint venture partner, Epangelo, together with the Namibian Government. Namibia remains one of Africa's premier mining jurisdictions, and we believe Kokoseb is well positioned to become the country's next major gold mine.”
— Henk Diederichs, Managing Director and CEO
Wia Gold anticipates receiving the mining licence and environmental approvals for Kokoseb in the second half of 2026. The company is targeting the completion of definitive documentation and financial close for the Sprott financing facility in the fourth quarter of 2026, with construction also targeted to begin in H2 2026. First gold production at the project is targeted for the fourth quarter of 2028.
Read the full announcement: Robust DFS for Kokoseb and Project Financing Update