Wolf has been reliant on funding from Resource Capital to keep going while it sorted out teething problems at the new Drakelands mine near Plymouth, but this improvement programme is now nearly done said Richard Lucas, interim managing director.
“We anticipate 2018 being a transformative year for Wolf, where it reaches design performance and pursues further opportunities to build shareholder value.
“These financing arrangements provide a platform to achieve those goals.
“The operational ramp up at Drakelands is progressing towards completion and, with strong tungsten market conditions, should deliver long-term self-sustaining cash flows.”
Resource Capital is to increase its bridge loan by US$10mln to US$65mln, from US$55mln, with a further US$5mln available at the fund manager’s discretion.
Senior debt holders, meanwhile, have agreed a standstill period over the outstanding £64mln and re-jigged the repayment schedule.
Offtake partners Global Tungsten & Powders and Wolfram Bergbau und Hütten will also align with the extended senior debt standstill period.