W Resources PLC (LON:WRES) had updated on its ongoing financing discussions for the La Parrilla tungsten project in Spain.
The mining firm has advanced a €2.78mln (£2.4mln) funding package to help ramp-up production at the site as well as to support the company’s existing €155,000 (£132,780) cash balance.
READ: W Resources continues to advance ramp-up activities at La Parrilla
Meanwhile, the group has raised around £289,000 through the placing of 72.2mln new shares at a price of 0.4p each, a 17.6% premium on its Thursday close price.
WRES added that it has also been in advanced discussions with Spanish banks and debt providers to increase debt funding lines by at least €1mln to support a ramp-up of production at La Parrilla, although a firm commitment has not yet been finalised.
In the meantime, the company has been lent around £343,000 in short term loans from three of its directors, Byron Pirola, Michael Masterman and James Argalas.
A €5.3mln (£4.5mln) grant from the regional government of Extremadura is also advancing, with the funds expected to be received in the first quarter of 2020 while the €2.78mln funding package will provide enough cash in the interim period.
In late-afternoon trading on Friday, W Resources shares were 6.7% higher at 0.4p.
