logo-loader
viewWolf Minerals Limited

Wolf Minerals sees turning point as lenders provide more support

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

lightbulbs
Drakelands is on course for nameplate capacity, said Wolf

Devon-based tungsten and tin miner Wolf Minerals Limited (LON:WLFE) has topped up its bridge loan facility with major shareholder Resource Capital and restructured its other Senior debts.

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.  

READ: Wolf Minerals boosts production and sales of tungsten concentrate from Drakelands

“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.

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