(Alliance News) - W Resources PLC said Monday it has started a programme to close the La Parrilla mine in Spain as the Spanish government said that all non-essential services, including mining, is to be closed until April 9.
The closure of the mine is set to be completed by Tuesday, with a small maintenance crew and security to remain on site.
In addition, in order to establish a financial buffer in the face of a national lockdown in Spain, W Resources secured a GBP4.0 million convertible bond facility from Atlas Capital Markets, comprising a convertible bond with a coupon of 5% and a term of three years.
The facility can be drawn in tranches of up to GBP500,000 at W Resources's discretion.
"In these unprecedented and volatile times it is important to have in place a strong buffer of additional financial resources. The Atlas GBP4.0 million convertible bond facility achieves this outcome and complements the recent equity placement at 0.36p. We are moving to access the Spanish government supported bank financing facilities and other grants which will further strengthen our financial position in these challenging times," said Chair Michael Masterman.
Shares in W Resources closed 23% lower at 0.11 pence on Monday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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