(Alliance News) -Â W Resources PLC on Monday said it has completed a placing to raise GBP2.3 million, which will be expanded to GBP2.5 million when Chair Michael Masterman invests.
The tungsten, tin and gold mining company placed 28.3 million shares at 8 pence each to raise GBP2.3 million from new and existing investors. Shares in W Resources were down 13% at 8.08p in London on Monday.
Chair Masterman intends to participate and invest GBP250,000 on the same terms as the placing once the company has published its 2020 accounts and is no longer in a closed period. This will bump up the fundraising to GBP2.5 million.
W Resources intends to publish its accounts "in the coming weeks".
Subscribers under the placing also received warrants to subscribe for new shares on the basis of one warrant for every two placing shares. The warrants are exercisable at any time in the next two years at 12p each.
"We are delighted to welcome new institutions to our shareholder register and look forward to increasing production, sales and profitability as we regain access to the higher-grade ore at La Parrilla. The second half of 2021 should see positive operational cashflow and a turnaround in creating shareholder value," said Chair Masterman.
As announced in March, the management and operations team at La Parrilla in Spain are taking steps to lower the water level and regain access to the higher-grade ore. It is envisioned that these steps will create a permanent solution covering the life of the mine.
"The majority of the funds raised from the placing will be used to achieve the permanent solution to high water levels thereby giving access to higher-grade ore and significantly increasing tungsten and tin production at the La Parrilla mine as well as providing additional working capital to cover the ramp-up in production," the firm said.
It added that tungsten recovery rates continue to improve and were around 50% in April.
By Lucy Heming;Â lucyheming@alliancenews.com
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