Devon-based tungsten miner Wolf Minerals (LON:WLFE) has topped up its cash reserves with a £25mln (A$51m) equity facility while production at the mine ramps up.
Resource Capital Fund VI, Wolf's largest shareholder, is putting up the cash, with the equity to be issued at 9.19p, a 13% premium to the share price.
Russell Clark, managing director, said the facility would allow Wolf to focus on ramping-up the processing plant at Drakelands at a time when the tungsten price had fallen almost 50% since construction of the plant commenced in March 2014."
Wolf took over the running of the mine in Autumn last year and Clark the focus in he recent quarter was to understanding the plant in an operating environment and building plant run times.
"The company is looking towards the longer term and to this end has made an application to extend the life of the Drakelands planning permission (by fifteen years to 2036) as well as undertaking a number of geological projects to further improve understanding of the orebody, " he said.
The tungsten price fell 14% to US$178/mtu in the quarter as steady demand in Japan and Europe was offset elsewhere by soft conditions in the mining, oil and fracking industries and China.
Capital expenditure in the three months to December was around £9.1mln. Work on a new public road to the site also got underway. Cash holdings at the end of the quarter were £15.8mln.