(Alliance News) - W Resources PLC on Tuesday said it has secured a EUR5 million loan facility to go towards repaying debt and working capital purposes.
The tungsten, tin and gold mining company said the facility, provided by Banco Santander SA, will be used to pay its EUR3 million loan from Spanish bank Caja Rural de Extremadura, with the remaining EUR2 million to be used for working capital.
The loan has an interest rate of 3% per annum payable quarterly. The loan has a term of 12 months but may be paid upon W Resources' receipt of its EUR5.3 million grant from the Junta de Extremadura.
In September the company said it would apply for the grant from Extremadura, in western Spain. The company originally expected to receive the grant in the first half of 2020, however this has been delayed until mid-2020.
In May, W Resources received a EUR3 million loan advance from Caja Rural de Extremadura that provided an advance of funding against the EUR5.3 million grant.
"We are pleased to have closed this new facility with Santander which will provide additional flexibility and liquidity at low-cost to the group. 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 the La Parrilla mine," said W Resources Chair Michael Masterman.
Shares in W Resources were flat at 0.30 pence each on Tuesday in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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