Wiluna Mining is hoping to complete a capital raising, likely to be $25 million or more, as it seeks to complete development works at its gold operation.
The company was voluntarily suspended from quotation on the ASX on Friday.
In an announcement today, Wiluna said it was working on a capital raising and had picked Lazarus Corporate Finance as its broker.
Discussions so far had been positive, the statement said, with further details on the raising expected later this week.
The business, which formerly traded as Blackham Resources, said it is hoping to target a full production run rate of up to 120,000 ounces a year by the end of 2022 at the Wiluna mining operation in the Mid West.
Development plans at the mine had been significantly delayed, with a tailings treatment plant now not expected until September, the statement said.
The company is understood to need at least $25 million of capital to get its construction projects to completion and give it sufficient working capital.
Factors contributing to the pressure have also included issues with incoming cash flow, driven by delays in container movements for shipping concentrate.
The business said skilled labour shortages and the pandemic had delayed underground mining, and supply chain constraints had delayed equipment arrivals for its tailings treatment plant.
But underground operations were nonetheless ramping up, as was the Wiluna floatation plant.
Wiluna also said the conflict in Ukraine had delayed a planned listing on the London Stock Exchange.
