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W Resources raises £1mln to support La Parilla construction

The company is working to close a US$30mln financing facility for La Parilla, and tungsten sales contracts are also in the works.
mine truck
New shares are being issued at 0.375p each

W Resources PLC (LON:WRES) has raised £1mln of new capital to support the company during the ongoing construction phase of the La Parrilla mine development in Portugal.

The company is meanwhile working to close a US$30mln financing facility for La Parilla.

READ: W Resources boosted by significant recovery in Tungsten prices

The interim funding will help cover costs relating to the construction of the crusher and civil works, longer lead items, and to initiate steps to allow early production systems (subject to tungsten prices).

Additionally, the company highlighted that it has two large investment grade customers who could cover some 80% of production from the planned T2 area - which would have 2,700 tonnes per year of tungsten concentrate.

READ: W Resources gets licence extension for Tarouca tungsten project

An agreement has now been signed with one of the potential customers and it expects the other to sign a letter of intent shortly.  The company expects to convert these initial agreements into formal contracts by the fourth quarter, and those deals would support debt financing.

Today’s placing sees 240mln new shares issued at a price of 0.375p to raise £900,000, and a further £100,000 will be invested via a share subscription by a vehicle connected to chief executive Michael Masterman.

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