Ongoing discussions between Wolf Minerals Ltd (LON:WLFE, ASX:WLF) and its lenders and major backer Resource Capital Funds “have continued to be positive” according to commentary released to market by Wolf this morning.
Wolf undertook one of the UK’s largest mine builds in many years when it put the Drakelands tungsten mine in Devon into production last year.
However, since that time the tungsten price has continued to be weak, and Drakelands has struggled to deliver clear margin.
Accordingly, on 30 September Wolf’s shares were suspended from trading on the Australian Stock Exchange as a debt covenant relating to a forward cash flow forecast had been breached.
Now though, Wolf says progress has been made. Discussions, it says, “have advanced to a point where the company has every expectation that completion of final binding agreements will now occur on or before 21 October 2016.”
The plan is to complete and then release details of these agreements, put out the annual report, and then lift the suspension on the ASX.