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W Resources submits application for substantial grant at La Parrilla

Published: 09:30 17 May 2017 BST

picture of tungsten drill bit
La Parrilla will produce tungsten and tin

W Resources PLC (LON:WRES) has filed its application for an equipment grant for the La Parrilla tungsten mine in Spain.

The grant application is for a percentage of the €19.5m plant and facilities package for the La Parrilla Fast Track Mine development, which includes the Crusher, Jig / Mill Plant and the Concentrator, said the AIM-listed compnay.

"Over the next three to six months the Government will evaluate the full application and (if approved) determine the percentage of the €19.5m package that they will fund, which could be up to 30% of that amount."

WATCH: W Resources' boss on La Parrilla funding & development

Following the completion of the plant and facilities, and on meeting the target employment levels outlined in the application, IRS, W Resource’s subsidiary at La Parrilla, will submit a request for the Grant pay-out to the Junta de Extremadura Government.

The Government will then verify fulfilment of all conditions in an audit and the Grant will be paid to IRS upon satisfactory completion.

Fernando de la Fuente, W's Spanish country manager said: "The Junta de Extremadura is a strong supporter of the La Parrilla development.”

W Resources had already said it was seeking US$24mln in debt finance to fund the next stage of construction at La Parrilla, but a full grant will take a big chunk out of that.

Commissioning is expected by the second quarter of 2018, with the expansion to take production up to 2mln tonnes per year for 2,500tpa of tungsten concentrate and 500tpa of tin concentrate.

Design and engineering of the next stage (T2) has also allowed for a further expansion of La Parrilla to mine at a rate of up to 3.5mln tpa.

The next stage will cost US$27mln to get to commissioning.

Shares rose 4% to 0.328p.

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