W Resources PLC Financing Update: US$30m Term Loan (0186Z)
12 December 2017 - 6:00PM
UK Regulatory
TIDMWRES
RNS Number : 0186Z
W Resources PLC
12 December 2017
12 December 2017
W Resources Plc
("W" or the "Company")
Financing Update: US$30m Term Loan to Finance La Parrilla
W Resources Plc (AIM:WRES), the tungsten, copper and gold,
exploration and development company with assets in Spain and
Portugal, has received preliminary approval from a US Special
Situations Fund to provide a US$30 million term loan to W Resources
to fund the La Parrilla tungsten tin mine in Spain.
The term loan has received preliminary approval from the
investment committee and is subject to final due diligence and
legal documentation. Legal documentation is underway and financial
close is targeted for late December 2017 / January 2018.
The financing represents a major milestone for W Resources, is
based on competitive terms and fully funds the development of the 2
million tonnes per annum ("mtpa") Run of Mine / 2,700 tonnes per
annum tungsten concentrate La Parrilla mine development (the
"T2").
Development work at La Parrilla is progressing well with design
of the jig, concentrator, mine and associated infrastructure.
Engineering is on schedule for completion in Q1 2018 and orders for
all long lead items have been placed. Formal feedback on the grants
application for a percentage of the EUR19.5m plant and facilities
package from the Junta de Extremadura Government is expected in
January 2018 and the Company has submitted the environmental
approval documentation to expand the mine from 2 mtpa to 3.5 mtpa
at that time.
Letters of intent with two leading Tungsten customers have been
signed and final off-take contract documentation is underway.
Michael Masterman, Chairman of W Resources commented: "The Board
is delighted to have received preliminary approval for the funding
of La Parrilla. 2018 looks set to be a transformational year for
the Company as we conclude the plant development and start
production at La Parrilla, which is on track to be one of the
world's largest tungsten mines, whilst remaining extremely low-cost
to bring into production. Our shareholders have been extremely
patient and we now look forward to closing the financing and
accelerating the development process."
Enquiries:
W Resources Plc Grant Thornton UK LLP
Michael Masterman Colin Aaronson / Jen
T: +44 (0) 20 7193 7463 Clarke / Harrison Clarke
www.wresources.co.uk T: +44 (0) 20 7383 5100
Turner Pope Investments (TPI) Gable Communications
Ltd Justine James
Andy Thacker T: +44 (0) 20 7193 7463
T: +44 (0) 203 621 4120 M: +44 (0) 7525 324431
www.turnerpope.com
About W
In 2012, W Resources Plc (AIM:WRES) made the successful
transition into a tungsten production exploration and development
company with projects in Spain and Portugal, following two
acquisitions. Projects now include La Parrilla, a tungsten project
in Spain and RĂ©gua and Tarouca Tungsten projects and the Portalegre
copper-gold project in Portugal.
The Company's deposits and tungsten mine developments offer a
low cost, high margin resource development opportunity. Tungsten
and Tin prices have increased significantly over the last 12 months
and Tungsten is in the EUs top 5 critical metals list.
The Board is focused to explore further opportunities in the
region with a view to building a mid-tier minor metal producer.
The Company was incorporated in England and Wales in 2004.
This information is provided by RNS
The company news service from the London Stock Exchange
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