(Alliance News) - W Resources PLC said Wednesday it has increased the existing loan facility with managed by BlackRock Inc by USD5.0 million, taking the total facility plus rolled-up interest to USD49.1 million.
The tungsten, tin and gold mining company said: "The funding has been put in place to ensure W Resources continues to provide for working capital requirements enabling the team to focus on driving the ramp-up of the La Parrilla tungsten and tin mine in Spain and the advancement of the Regua tungsten mine in Portugal."
The company said La Parrilla mine has now moved to 24-hour operation of the new concentrator plant, producing tungsten concentrate in line with shipment specifications.
"Production rates are steadily increasing and will be further boosted by the move to continuous operations," the company said.
Chair Michael Masterman said: "It is important for W Resources to have demonstrable funding to provide the resources for expansion. This upsizing of the BlackRock facility achieves this objective with no dilution to shareholders, enabling the team to push ahead with the production ramp-up at La Parrilla and development work at Regua as we work towards bringing our second mine on stream next year."
Back in February 2018, W Resources said that it had signed a credit and guaranty agreement with BlackRock to secure USD35.0 million to fund La Parrilla mine development. The company took up the first USD13.1 after signing the agreement and the remaining USD21.9 million in May 2018.
W Resources shares were up 5.7% in London at 0.30 pence each on Wednesday.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
Copyright 2019 Alliance News Limited. All Rights Reserved.
