W Resources PLC (LON:WRES), owner of the La Parrilla tungsten and tin mine in southwest Spain, said it has received a previously announced grant from the Junta de Extremadura government.
The grant, initially awarded in March 2018 for the sum of €5.3mln (£4.6mln) has, subject to one amendment, been paid and total proceeds of €5.2mln have been received as settlement in full.
In February 2020, the AIM-quoted company received a €5m loan from Banco Santander SA to monetise the grant and this has now been repaid, it said.
"Receipt of the €5.2m grant proceeds is a long awaited and extremely timely outcome,” said chairman Michael Masterman. “It's a true credit to the team to have been awarded this grant and received the cash funds.”
“We have immediately used the funds to reduce debt and strengthen our balance sheet.
“With tin prices up 100% in the last six months, strong tungsten prices and materially improved plant performance we expect a strong second half of 2021," he added.
La Parrilla, the company's flagship project, is located in the Extremadura region of Spain.