W Resources PLC (LON:WRES) has secured a finance package for the fast-track development of La Parrilla tungsten mine in Spain worth up to US$3.2mln.
It has agreed a US$1.2mnln forward sales facility with ICD Alloys and Metals, a speciality chemicals, metals and plastics firm based in the US. A total of US$200,000 has been handed over to date.
Additionally, there is an outline deal that would see ICD provide US$2mln of equipment finance for a crusher that would take La Parrilla’s output up to 1.95mln tonnes per year, or 2,500 tonnes of tungsten concentrate.
Initial mining is expected to get underway in the fourth quarter using the existing facilities producing at 400 tonnes of concentrate a year.
As part of the financing, tungsten sales will be contracted to one of the largest US tungsten processing companies, W Resources said.
"It's great to have secured these agreements for the initial start-up of the fast-track mine,” chief executive Michael Masterman added.
“The customer and equipment financing facilities enable us to move forward on this important phase of the project and allows us to start-up at low operating costs and with installed crushing capacity sized to the full 2,500 tungsten concentrate development."
In the same announcement investors were told the company remains in discussions with potential financiers of the two other core pieces of plant – the jig and mill and concentrator. They are expected to cost US$4.7mln and US$2.5mln respectively.