W Resources PLC BlackRock Additional US$7m Loan Facility (4903B)
08 October 2020 - 5:02PM
UK Regulatory
TIDMWRES
RNS Number : 4903B
W Resources PLC
08 October 2020
8 October 2020
W Resources Plc
("W" or the "Company")
BlackRock Additional US$7m Loan Facility and Amendment
Update
W Resources Plc (AIM:WRES), the tungsten, tin and gold mining
company with assets in Spain and Portugal, announces that funds
managed by the Global Credit Opportunities platform at BlackRock
Financial Management Inc. ("BlackRock") have agreed to increase W's
existing loan facility ("Loan Facility") by an additional US$7
million.
The additional funding will in part be utilised to implement a
comprehensive production programme to boost production at the La
Parrilla tungsten and tin project in Spain and provide a
significantly increased working capital buffer.
As reported on 1 September 2020, W and BlackRock had agreed for
W to pay BlackRock interest by way of payment in kind ("PIK") for
the May 2020 and August 2020 interest payments under the Loan
Facility and, at W's option, the November 2020 interest payment.
This PIK Loan Facility amendment has now been finalised along with
the agreement to increase the Loan Facility by an additional US$7m
which is subject notarisation in Spain and Portugal.
Under the amendment agreement, warrants to subscribe for
96,000,000 ordinary shares of 0.1p each on a 1:1 basis in the
Company at a strike price of 0.36p (equivalent to 1.2% of the fully
diluted capital of the Company) were issued for the May 2020 PIK
payment and warrants equivalent to 2% of the fully diluted capital
of the Company will be issued for the August 2020 PIK payment.
Should W PIK the November 2020 interest payment, it will issue
warrants equivalent to 3% of the fully diluted capital of the
Company. In addition, warrants equivalent to 3.5% of the fully
diluted share capital of the Company will be issued in
consideration of the increase in the Loan Facility. All shares
issued under the warrant agreement rank pari passu.
Chairman, Michael Masterman commented : "Whilst we have
experienced challenges with the development of the La Parrilla
project in Spain, we remain resolute that the remaining plant
improvements will prove successful. This confidence is further
underpinned by the continued support from BlackRock at this pivotal
point in production at La Parrilla. The initial US$2.75m tranche of
funds has been drawn this week. The additional facility will, once
fully drawn down, increase the total outstanding Blackrock facility
to a principal of US$47 million plus accrued interest ."
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Enquiries:
W Resources Plc Grant Thornton UK LLP
Michael Masterman Colin Aaronson / Jen Clarke /
c/o Alma PR Seamus Fricker
www.wresources.com T: +44 (0) 20 7383 5100
Joint Broker Joint Broker
Turner Pope Investments (TPI) Alternative Resource Capital /
Ltd Shard Capital
Andy Thacker / Zoe Alexander Alex Wood
T: +44 (0) 203 657 0050 T:+44 (0) 20 7186 9004
www.turnerpope.com www.altrescap.com
Damon Heath
T:+44 (0) 20 7186 9952
www.shardcapital.com
Alma PR
Justine James
T: +44 (0) 20 3405 0205
M: +44 (0) 7525 324431
wres@almapr.co.uk
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END
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