Wolf Minerals Limited (LON:WLFE) (ASX:WLF) has received a £10mln boost to its short term working capital as it progresses towards long term self-sustaining operations at the Drakelands open pit mine in south-west England.
In a statement today the specialty metals producer announced that it has reached agreement with Resource Capital Fund VI LP (RCF VI) to increase its existing bridge facility to £55mln from £45mln.
As RCF V, Annex Fund and RCF VI currently hold in aggregate 609,704,057 Wolf shares, which equates to a relevant interest of approximately 56.1%, entering into the amended Bridge Facility is deemed to be a related party transaction under AIM Rules.
The AIM-listed firm also said it will continue to review its long term capital requirements as the operating turnaround plan progresses and further value adding opportunities and cost reduction initiatives are investigated.
Richard Lucas, Wolf’s interim managing director, said: "The operating turnaround plan is delivering improved processing plant performance and is also building knowledge and experience across the business.
“When combined with improving tungsten market conditions, this provides an exciting outlook for 2018.”