In a decisive move that shapes the future of one of Western Australia's most troubled gold operations, Wiluna Mining's key stakeholders have rejected billionaire prospector Mark Creasy's buyout campaign in favour of resurrecting the company on the Australian Securities Exchange.
Shareholders Back Stock Exchange Return
Administrators from FTI Consulting have secured formal support from Wiluna's three major shareholders and debt funders to proceed with a capital raising that would see the collapsed gold producer return to public trading. The exact details of the fundraising remain undisclosed, but industry sources suggest more than $100 million would be required to facilitate the company's revival.
The consortium backing FTI's plan includes mining services contractor Byrnecut, German financier Delphi Group, and Canadian gold royalty business Franco-Nevada. Together, they hold a substantial position in the company with a combined 38.4% equity stake, $59 million of convertible notes, and $47 million of secured debt.
Creasy's Campaign Suffers Major Blow
The shareholders' collective endorsement of the relisting strategy represents a significant setback for Mr Creasy's campaign to acquire Wiluna's shares for 50 cents each - a substantial 138% premium compared to when the company last traded on the ASX in July 2022.
Since Wiluna's trading suspension, market conditions have shifted dramatically in favour of gold producers. The gold price has surged by 140% in US dollar terms, while Wiluna's namesake mine has received operational upgrades, giving the company's battered investors renewed confidence that the Murchison region operation might finally deliver returns.
The Wiluna mine has been a challenging asset, having consumed more than $800 million and sent two operators into administration within just over a decade before its latest collapse.
Administration Process and Legal Challenges
The administrators recently launched a $37.2 million convertible notes issue last month to bolster the creditor's trust, following legal pressure from former Wiluna chair Milan Jerkovic. Mr Jerkovic has since sold his shares to Mr Creasy for 50 cents each, and the prominent prospector is now understood to hold between 5% and 7% of Wiluna's equity.
The company's previous leadership continues to face regulatory scrutiny, with the Australian Securities and Investments Commission dragging Mr Jerkovic and former Wiluna chief commercial officer James Malone to the Federal Court in April over a capital raising completed just weeks before the company's 2022 collapse.
The decision by Wiluna's kingmakers to pursue an ASX relisting rather than accept Mr Creasy's buyout offer signals their belief that the restructured company can capitalise on improved gold prices and operational enhancements to finally succeed where previous iterations have failed.
