LONDON (Alliance News) - Wolf Minerals Ltd said Thursday the planning permission for its Drakelands tungsten mine in Devon has been extended, allowing for the restructuring of its debt.
Wolf Minerals said that Devon County Council has approved the extension of Drakelands' planning permission to 2036 and approved permanent 24-hour operations, seven days a week at the site, near Plymouth.
The company estimates that continuous operations can increase its tin and tungsten production levels by approximately 20% with reduced unit costs.
The planning permission extension means that the standstill period on Wolf Mineral's outstanding senior debt has come to an end, but also allows for the extension of the tenor of the debt. Wolf Minerals said that all its senior debt principal repayments are now deferred until January 2018 and the period of repayment is extended until June 2023.
"The extension of the planning permission will ensure that Wolf's ore reserve can be mined in full, the 200 jobs we have created will be secure for longer, and Wolf's significant contribution to the Devon economy will be extended," said Russell Clark, managing director of Wolf Minerals.
Shares in Wolf Minerals were flat at 5.00 pence Thursday.
By Adam Clark; adamclark@alliancenews.com
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