Wolf Minerals (LON:WLFE ASX:WLFE) will use £16mln of its new equity standby this month after shareholders approved the facility last night in Australia.
Forty per cent shareholder Resource Capital Funds, the Devon-based tungsten miner’s major backer, has put up £25mln in total through the facility, which will be available for six months.
Shares will be issued at 9.19p compared to a close of 8.48p yesterday and the money used to provide working capital while the new Drakelands mine near Plymouth ramps up to full capacity.
Russell Clark, Wolf’s managing director, said: "The approval of the Facility enables Wolf to continue its ramp up of the Drakelands mine to enable the project to reach its true potential.
“We are starting to see price increases and remain confident that Wolf, with its large production capacity and location in a first world country will be well positioned when the market recovers."