W Resources PLC has drawn down US$2mln from the US$5.5mln loan facility provided to it by BlackRock Financial Management Inc.
The additional funding will be used to finance working capital requirements at the La Parrilla tungsten mine in Spain.
Production at the La Parrilla mine is still suspended as the prices for delivery of Liquefied Natural Gas remain in excess of €500,000 per month, which is too high to allow production to be economically viable.
The company continues to look at alternatives to LNG. In particular the company is investigating solar power and also an upgrade to the electricity grid connection.
This US$2mln loan represents the second tranche of the loan facility and will increase the total outstanding BlackRock facility to a principal of US$53mln, plus accrued interest of circa US$27mln.
Given that W Resources shares will be delisted from AIM, the company intends to provide an alternative trading platform for shareholders. An update on this is expected shortly.