Proactive Investors - Run By Investors For Investors

Wolf Minerals extends bridging facility

Wolf's new funding arrangements will keep it going until a more strategic refinancing can take place
Wolf Minerals extends bridging facility
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.

 

View full WLF profile View Profile

Wolf Minerals Limited Timeline

Newswire
August 14 2018

Related Articles

Potash
March 05 2019
The company’s $5.3 million rights issue to fund completion of its DFS closes this week.
Workers inspect core at Gubong
March 04 2019
The company gained another substantial holder last week to end the trading week up 6.25% on the Australian market.
A vessel is loaded up, ready to leave Esperance port with Bald Hill lithium concentrate bound for China
January 16 2019
The merged companies had been equal partners on WA’s Bald Hill spodumene mine.

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use