W Resources PLC (LON:WRES) has put in place a €5mln facility with Banco Santander, with the firm to use the money to repay an existing €3mln loan from Caja Rural de Extremadura and to provide a net €2mln of additional working capital and liquidity.
The facility allows W Resources to monetise the majority of the €5.3mln grant from Junta de Extremadura Government, which the company had expected to receive in the first quarter of 2020 which it is likely to receive now until mid-2020.
W Resources has met all conditions by which the grant will be awarded. Receipt has been delayed by a combination of construction completion delays and the normal review and verification process of the Extremadura government.
The Santander facility interest rate is 3% per annum, payable quarterly, with no amortisation and is secured by a pledge over the rights to the grant funds. The term of the loan is the earlier of 12 months or the receipt of the proceeds of the grant funds.
"We are pleased to have closed this new facility with Santander which will provide additional flexibility and liquidity at low-cost to the group,” said W Resources chairman Michael Masterman.
“Santander is a leading European bank and we look forward to strengthening our relationship with them. We greatly thank Caja Rural for their interim support of the development of La Parrilla."
W Resources is a tungsten producer with assets in Spain and Portugal