Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

W Resources receives preliminary approval from US fund for US$30mln loan for La Parrilla construction

The loan is based on competitive terms and will fully fund the development of the first phase of the mine’s development
picture of light bulbs with tungsten filaments
All looking bright for W Resources

W Resources PLC (LON:WRES) shares gained on Tuesday following news it has received preliminary approval for a US$30mln term loan with a US special situations fund to finance the La Parrilla tungsten/tin mine in Spain.

In late afternoon trading, shares in W Resources were up 12.1%, or 0.04p at 0.37p.

The fund’s investment committee has agreed the term loan with financial close targeted for late December 2017 or January 2018.

READ: W Resources raises £1mln to support La Parilla construction

W Resources added the loan is based on competitive terms and will fully fund the development of the first phase of the mine’s development.

The plan in the first phase is to produce 2,700 tonnes of tungsten concentrate a year from mining 2mln tonnes of ore, with mine production to be expanded to 3.5mtpa/4,000 tonnes of concentrate in the second phase.

W Resources added it expects to hear back on whether it will receive a percentage of the €19.5m plant and facilities package to be allocated by the Junta de Extremadura government in January 2018,

Environmental approval documentation to expand the mine to 3.5 mtpa has also now been submitted.

At La Parrilla, engineering work is on schedule for completion in the first quarter of 2018 and orders for all long lead items have been placed, the junior added.

READ: W Resources boosted by significant recovery in Tungsten prices

Letters of intent with two leading tungsten customers have been signed and the offtake contract documentation being finalised.

Michael Masterman, chairman, said: "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.

“Our shareholders have been extremely patient and we now look forward to closing the financing and accelerating the development process."

 -- Adds share price --

View full WRES profile View Profile

W Resources PLC Timeline

Big Picture
September 10 2018

Related Articles

Drill rigs in Mongolia
May 04 2018
The recent discovery hole at Zaraa intersected 606 metres at 0.36% copper and 0.32 g/t gold.
June 25 2018
Kibo's transformation into an energy company is gathering momentum
Drilling at Coglia Well
May 10 2018
Pending exploration results combined with those from a second drill program should allow the company to establish a resource estimate.

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use