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.