Wiluna Mining Corporation: Administrators from FTI Consulting ink capital raising to pay 300-plus creditors

A prize fight is emerging over collapsed gold play Wiluna Mining as famed prospector Mark Creasy’s business swoops in to buy a stake. Administrators of Wiluna — which have been in control since 2022 — also inked a major capital raising on Tuesday to repay more than 300 creditors about $37 million. The company’s previously-troubled mine has now been dubbed “a prime piece of real estate” after the gold price rocketed north of $US4000 an ounce. Administrators from FTI Consulting said two major shareholders had taken up a convertible note issue in Wiluna that would fully fund former creditors. It’s believed contractor Byrnecut and German private equity firm Deutsche Balaton AG were the investors. “This support illustrates their confidence in the ongoing restructuring of Wiluna and the current macro gold investment environment,” administrators said. The notes were unsecured and would not bear interest, but will have rights to convert into shares at a discount the next time Wiluna raises equity. That could happen within months as the deal paves the way to relist the business on the ASX, which would likely require a $100 million-plus equity raising. Yet a fresh twist emerged just hours later when former chair Milan Jerkovic revealed he had sold shares in Wiluna to Creasy Group at 50 cents each. That’s more than twice the price when the company was last trading on the bourse. In a letter to shareholders, he indicated Creasy Group would extend the offer widely. Mr Jerkovic lodged a Supreme Court bid earlier this month to investigate the administration and claw back cash for creditors. It’s understood that will continue. “After 3.5 years, it’s good to see some activity and a positive outcome for both the creditors and shareholders,” he told The West Australian. “I’ll be seeking further clarification as to what’s been proposed and what has transpired.”