18 Mar 2022 07:00
18 March 2022
W Resources Plc
("W" or the "Company"
La Parrilla Update
W Resources Plc (AIM:WRES), the tungsten, tin and gold mining company with assets in Spain and Portugal, announces that following the maintenance shutdown announced on 15 February 2022, production at the La Parrilla mine in Spain has now recommenced. There was no production in February other than small quantities of work in progress that were reprocessed during early February.
The initial maintenance shutdown was scheduled for two weeks, and in that period further improvements were identified, delaying the restart in addition to the Company evaluating options regarding the Liquefied Natural Gas ("LNG") supply, following the 425% price increase announced last month.
During the extended maintenance shutdown a series of important improvements were carried out in order to streamline the efficiency and operation and overall recovery of the plant. These included: reinforcements to the primary and secondary crushing structures; updates to the safety control elements throughout the plant; installation of sump pumps across the plant; preparation for the installation of a new bench of spirals; levelling and compacting of areas for the construction of civil works for the installation of the new intermediate crushed ore stockpile as well as a new laboratory; and construction of additional infrastructure, building meeting rooms and updated staff changing facilities.
Further to the funding announcement on 2 March 2022, the first tranche of BlackRock Financial Management Inc. funds has now been received and was in part deployed to secure deliveries of LNG to power the plant. The Company continues to monitor the LNG price and is looking to accelerate plans to have a second electricity power line connected to the mine as well as investigating access to solar energy which will reduce its reliance on LNG.
Chairman, Michael Masterman commented: "W realises the importance of recommencing production at the La Parrilla mine and looks forward to resuming shipments of tungsten concentrate, an event welcomed by our customers, staff and stakeholders alike.
"The war in Ukraine is creating unprecedented pressure on energy prices, which the Company has to navigate and is evaluating all alternative options available. Notwithstanding this challenge, demand for our tungsten and tin concentrate remains very strong and prices remain robust."
The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
Enquiries:
W Resources Plc Paul Hailes investor@wresources.com www.wresources.com | Grant Thornton UK LLP Colin Aaronson / Harrison Clarke / Samuel Littler T: +44 (0) 20 7383 5100 |
Alternative Resource Capital / Shard Capital Alex Wood T:+44 (0) 207 186 9004 www.altrescap.com Damon Heath T:+44 (0) 207 186 9952 www.shardcapital.com | Alma PR Justine James M: +44 (0) 7525 324431 wres@almapr.co.uk |