(Sharecast News) - Spain and Portugal-focussed tungsten, tin and gold mining company W Resources has finalised a €5m (?4.14m) facility with the Spanish bank, Banco Santander, it announced on Tuesday.
The AIM-traded firm said it would be used to repay its existing €3m loan from Caja Rural de Extremadura, and provide a net €2m of additional working capital and liquidity.
It explained that the facility would allow the company to monetise the majority of the €5.3m grant from Junta de Extremadura Government, which it had expected to receive in the first quarter of 2020, but was now expected by the middle of the year.
W said it had met all conditions by which the grant would be awarded, although receipt was delayed by a combination of the allmineral Aufbereitungstechnik construction completion delays, and the normal review and verification process of the Extremadura government.
The facility interest rate would be 3% per annum, payable quarterly with no amortisation, and was secured by a pledge over the rights to the grant funds.
W said the term of the loan was 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 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."
At 1320 GMT, shares in W Resources were down 1.33% at 0.3p.
22 Sep 2016 08:27