LONDON (Alliance News) - Metals producer Wolf Minerals Ltd on Monday said it has agreed new financial arrangements which should cover its operations until the end of October.
Shares in the company were down 10% on Monday in London to 2.20 pence each.
Wolf Minerals has increased its existing bridge facility to GBP69 million from GBP65 million, with GBP2 million of this to be made available immediately.
It also has agreed a standstill with lenders over outstanding fees and default matters, and the deferral of principle and interest payments of GBP2.1 million until October 28.
Wolf Minerals said it also has agreed with Resource Capital Fund VI LP for a further GBP4 million secured priority loan, which could go up to GBP5 million.
This new financing, the company said, should keep it going until October 28 as it looks to keep ramping up operations at its Drakelands open pit mine on the Hemerdon tungsten and tin project in Devon. At that time, Wolf Minerals will review further financing options.
Managing Director Richard Lucas said: "As we drive further operating improvements towards self-sustaining cash flows and convert value-adding opportunities, such as ore pre-processing, these financing arrangements provide additional flexibility to prepare for our future as a significant contributor in the tungsten market.
"The support we receive from each of our key project stakeholders is fundamental to the long-term success of Wolf and we recognise their shared vision of a secure, long term source of tungsten in the UK."
As a result of the announcement, Wolf Minerals shares in Australia have been re-admitted to trading, having been suspended on Thursday last week pending an announcement.