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Wolf Minerals extends bridging facility

Wolf's new funding arrangements will keep it going until a more strategic refinancing can take place

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Drakelands produces tungsten and tin

Wolf Minerals LTD (ASX:WLF)(LON:WLFE) has extended its existing bridge facility from £65mln to £69mln, with £2m of the new money available immediately.

The move comes as Wolf considers a more strategic long-term restructuring of debt incurred for the construction of the Drakelands tungsten mine in Devon.

READ: Turnarou nd plan at Wolf Minerals proceeding apace

Wolf has also agreed on a standstill with senior lenders regarding outstanding fees and matters of default, and the deferral of senior debt principal and interest repayments totalling approximately £2.1mln, until 28 October 2018.

These financing arrangements expected to be sufficient to support Wolf's short-term working capital requirements until 28 October 2018, during which time the company will undertake a strategic review of its funding arrangements.

"As we drive further operating improvements towards self-sustaining cash flows and convert value-adding opportunities, such as ore pre-processing, these financing arrangements provide additional flexibility to prepare for our future as a significant contributor in the tungsten market,” said Wolf's managing director, Richard Lucas.

“The support we receive from each of our key project stakeholders is fundamental to the long-term success of Wolf and we recognise their shared vision of a secure, long-term source of tungsten in the UK."

Wolf had A$19.8mln (£11mln) total cash at 30 June 2018, of which A$17mln (£9.5mln) was restricted for use on the noise and vibration management plan.

As a result of the funding arrangements described above, the Company expects to have sufficient working capital for the period to 28 October 2018.

 

Quick facts: Wolf Minerals Limited

Price: 0.035 AUD

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