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20 Apr 2012 08:35
20 April 2012
Wolf signs tungsten offtake deal
Wolf Minerals Limited ("Wolf") is pleased to announce that the Company has signed a non-binding Heads of Terms ("Heads") for tungsten offtake and a loan facility with Wolfram Bergbau und Hutten AG, Austria ("WBH"), and Global Tungsten & Powders Corp, Pennsylvania, USA ("GTP"). These agreements are part of a joint effort between WBH and GTP to support the development of a new major tungsten mine.
These offtake agreements cover 80% of Hemerdon's expected average annual tungsten concentrate output for a period of a minimum of 5 years, extendable under mutual consent. Under the Heads Wolf is expected to supply a 65% tungsten trioxide, wolframite concentrate based upon standard commercial terms. The Hemerdon mine is expected to produce an average of 345,000 mtu's of tungsten trioxide in concentrates per annum and 450 tonnes of tin.
Subject to technical and legal due-diligence as well as board approvals WBH and GTP will provide a £20 million loan facility to Wolf. This will form part of the project funding package and is in addition to the recently announced debt facility of £55 million.
Wolf expects to complete the final documentation for the offtake agreements, in conjunction with documentation for the lending banks, in the second quarter of 2012.
Humphrey Hale, CEO, commented "The signing of a long term offtake contract with two of the largest tungsten producers represents a significant milestone in the development of the Hemerdon tungsten mine. The company is pleased to provide security of supply to these global specialty powder and metal manufacturers and looks forward to developing a strong relationship in the future."
ENDS
For further details, please contact:
Wolf Minerals Limited Humphrey Hale
| +61 8 6364 3776 |
Investec Mark Wellesley-Wood/Neil Elliot | +44 20 7597 4000
|
Newgate Threadneedle Josh Royston/Beth Harris | +44 (0) 20 7653 9850 |
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