logo-loader
viewWolf Minerals Limited

Main backer digs deeper to support Wolf Minerals

An existing bridge loan facility will rise to £40mln from £30mln

picture of lights
Tungsten filaments have not been burning brightly of late

Plymouth-based tungsten miner Wolf Minerals (LON:WLFE) has received a further £10mln in bridge loan finance from its main backer Resource Capital. 

An existing bridge loan facility will rise to £40mln from £30mln to give the company time to get the mine at Hemerdon in Devon working at optimal levels.

Wolf has been dogged with processing plant problems ever since the mine was commissioned over 18 months ago and has been hit recently by more reliability and performance issues it said today.

Tungsten prices have also barely budged over the past year even though the metal remains in short supply. 

Richard Lucas, interim managing director, said it had identified additional resources and expertise to drive improvements in operating performance and build a long term sustainable business.

“Despite the low-price environment for tungsten and commodities in general, the continued support of RCF VI is testament to their confidence in Drakelands and the Wolf management team."

The new funding is being provided on effectively the same terms original facility set up in October last year and will switch to either a subordinated convertible/straight loan in October 2017.

As part of the amendment to the Bridge Facility amount, the minimum conversion price of the subordinated convertible loan has been reduced from A$0.13 per share to the lesser of A$0.07 per share.

Quick facts: Wolf Minerals Limited

Price: 0.035 AUD

ASX:WLF
Market: ASX
Market Cap: $38.18 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

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...

In exchange for publishing services rendered by the Company on behalf of Wolf Minerals Limited named herein, including the promotion by the Company of Wolf Minerals Limited in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Demise of Wolf Minerals Ltd 'a blow for UK mining' - Alastair Ford

Mining Capital's Alastair Ford discusses the collapse this week of Wolf Minerals Limited (LON:WLFE) (ASX:WLF). Ford says what really did it for Wolf was simply that the economics of production at Hemerdon never really stacked up. He adds that its major investor RCF will now be staring...

on 12/10/18

2 min read