W Resources PLC (AIM:WRES) has had a loan facility provided by BlackRock Financial Management increased by US$5.5mln.
The additional funding will pay for capital items at the La Parrilla mine, including additional plant and equipment and boost the working capital buffer, W said in a statement,
“Under the amendment agreement, the cash interest rate from now until maturity remains unchanged whilst the Payments in Kind interest rate will accrue at a small premium to the cash interest rate,” it added.
New warrants will also be issued to BlackRock.
Michael Masterman, W’s chairman, said: “I believe the company is now well-positioned to bring about an increase in concentrate production.
“This confidence is further underpinned by the continued support from BlackRock at this pivotal point in production at La Parrilla.
“The initial US$2.5m tranche of funds has been drawn down and funds should be received later this week.
“The additional facility will, once fully drawn down, increase the total outstanding BlackRock facility to a principal of US$53mln plus accrued interest of circa US$25mln."