TIDMWLFE
RNS Number : 9957P
Wolf Minerals Limited
24 November 2016
24 November 2016
Wolf Minerals Limited
Approval received for planning permission extension and 7 day
operations at Drakelands Mine
Specialty metals producer, Wolf Minerals Limited (ASX: WLF, AIM:
WLFE) (Wolf or the Company) is pleased to announce that Devon
County Council (DCC) has approved the extension of the planning
permission at Wolf's Drakelands open pit mine (Drakelands) to 2036
and approved permanent 24 hour operations seven days a week at the
processing plant.
Highlights
-- Planning permission for Drakelands mine extended from 2021 to 2036.
-- Processing plant now permitted to operate 24/7, providing
potential to lift tungsten and tin production by 20%.
-- Debt restructure effective, tenor of the Senior Debt extended until June 2023.
Wolf Managing Director, Russell Clark, commented:
"The Drakelands mine was developed with the understanding that
the planning permission, originally granted in 1986, required
extension to enable the ore reserve to be fully mined. The Devon
Minerals Plan recognises the importance of this tungsten deposit
and its value to the United Kingdom and the broader western world
as a secure supply of this specialty metal. DCC's approval of the
extension of the planning permission is consistent with this
Minerals Plan.
The extension of the planning permission will ensure that Wolf's
ore reserve can be mined in full, the 200 jobs we have created will
be secure for longer, and Wolf's significant contribution to the
Devon economy will be extended.
The additional approval of permanent 24 hour operations for
seven days a week at the Drakelands processing plant will enable
the Company to produce more tungsten and tin more efficiently, with
around 20% more production at reduced unit costs.
The extension of the planning permission has also enacted the
debt restructure recently agreed with our lenders. Wolf now has an
extended tenor on its Senior Debt, through to June 2023.
These approvals provide our investors, lenders, suppliers,
customers and employees with the confidence to continue the ramp up
of this very important project. We also value the contribution of
our local communities and we will continue to work with them to
make this a successful project for all our stakeholders."
Planning permission extension
Planning permission for the mining and processing of tungsten
and tin at the Drakelands mine was originally granted by DCC to
Amax Exploration and Hemerdon Mining & Smelting (UK) Ltd in
June 1986, for a period of 35 years, expiring in 2021.
Wolf acquired the approved Drakelands mine in 2007 and engaged
with DCC in a review of the planning conditions with the objective
of ensuring that the operations met modern environmental standards.
As a result of this review, a scheme of new and modified conditions
was prepared, and this was approved by the Secretary of State
through a Modification Order in January 2011.
Wolf commenced mining of tungsten and tin at Drakelands in 2015
under the existing planning permission. To enable mining of the
whole ore reserve, Wolf applied for an extension of the 2021 time
limit in 2015. After extensive consultation with the community,
relevant agencies and the Company, DCC has granted the extension of
the Drakelands planning permission to 2036.
Approval of 24/7 operations
The planning permission was originally granted in 1986 and the
conditions allowed the operation of the primary crusher for only
5.5 days per week and restricted working on public holidays.
The primary crusher now installed at the processing plant is a
roll crusher, a much quieter machine than the jaw crusher that was
contemplated when the original permission was granted. Consequently
Wolf requested the removal of the condition restricting the
operating hours of the primary crusher, as the continuous use of
the crusher and processing plant has significant efficiency and
economic benefits.
DCC has allowed Wolf to trial extended operating hours since
processing plant operations commenced to provide data on actual
noise levels incurred by operating the primary crusher in
conjunction with the rest of the processing plant.
Following the trial, and as part of the approval of the
extension of the planning permission, DCC has now approved the
continuous operation of the primary crusher (and hence the
processing plant as a whole). As a result of the approval for
continuous operations, the Company estimates that production levels
of tin and tungsten can be increased by approximately 20% at
reduced unit costs.
Debt restructure
The Company currently has secured debt facilities with the
Senior Lenders (Senior Debt) and a secured bridge loan facility
with Resource Capital Fund VI L.P. (RCF VI) (the Bridge
Facility).
The Senior Lenders and RCF VI previously agreed a standstill of
certain Senior Debt and Bridge Facility conditions until the
extension of the Drakelands planning permission for an expiry date
beyond 2021 was approved by DCC. DCC's approval of the extension
now results in the conclusion of the standstill.
DCC's approval of the planning permission extension also
satisfies the condition precedent to the extension of the tenor of
the Senior Debt. Therefore all Senior Debt principal repayments are
deferred until January 2018 and the tenor of the Senior Debt is
extended until June 2023.
ENDS
Wolf Minerals Limited
Russell Clark +61 8 6364 3776
Numis Securities
John Prior/James Black/Paul Gillam +44(0)20 7260 1000
Newgate
Adam Lloyd / Ed Treadwell / Helena
Bogle +44 (0) 20 7653 9850
About Wolf Minerals
Wolf Minerals is a dual listed ("ASX: WLF", "AIM: WLFE")
specialty metals company. With global demand for tungsten rising
and future global production expected to be constrained, Wolf
Minerals has recently completed the development of a large tungsten
resource at its Drakelands Mine, located at Hemerdon, in southwest
England.
This information is provided by RNS
The company news service from the London Stock Exchange
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