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10 Dec 2013 16:45
10 December 2013
W Resources Plc
("W" or the "Company")
W Resources Completes Placing
W Resources Plc (AIM:WRES), a tungsten and gold exploration and development company with assets in Spain and Portugal announces that it has completed a placement of 149,375,000 ordinary shares of 0.1p per share ("Ordinary Shares") at 0.8p per Ordinary Share to raise approximately £1,195,000 (the "Placing"), before expenses.
Application will be made for the new Ordinary Shares (being issued in connection with the Placing) to be admitted to trading on AIM in two separate tranches. The first tranche of 93,125,000 ordinary shares is expected to occur on 23 December 2013 with the subsequent tranche of 56,250,000 ordinary shares admitted on 31 December 2013.
Related Party Transaction
The placees include Beronia Investments Pty Ltd ATF Duke Trust of which Dr. Byron Pirola (a director of the Company) is both a beneficiary and trustee, which has subscribed for 6,250,000 Ordinary Shares. The participation in the Placing of Dr. Pirola falls to be treated as a related party transaction under AIM Rule 13. The independent directors, being Mr Michael Masterman and Mr Michael Garland, having consulted with Grant Thornton Corporate Finance (the Company's nominated adviser), confirm that they are satisfied that the terms of Dr. Pirola's participation in the Placing are fair and reasonable insofar as the shareholders of the Company are concerned.
Following the issue of both tranches of all new Ordinary Shares, the Company will have 2,087,418,308 Ordinary Shares in issue, and:
- Dr. Byron Pirola (and related parties) will be interested in 139,959,749 Ordinary Shares in the Company, representing an interest of 6.70 per cent in the total voting rights.
Michael Masterman, Chairman of W, commented: "We are on track with the final stages of construction at the La Parrilla Tailings project and expect results from commissioning the pre-concentration plant before the year-end, moving into the production phase in January 2014. The funds raised in this placing provide W with additional working capital which will enable us to add further value at our other projects as we progress them in the New Year, including following-up on the discovery of high grade targets with a 1,500m drilling programme at the Tarouca tungsten project in Portugal."
Photographs of the current development at the La Parrilla site are shown on the Company's website at http://www.wresources.co.uk
Enquiries:
W Resources Plc | Grant Thornton UK LLP |
Michael Masterman | Colin Aaronson / Melanie Frean / Jen Clarke |
T: +44 (0) 20 7193 7463 | T: +44 (0) 20 7383 5100 |
www.wresources.co.uk | |
SI Capital | Gable Communications |
Andy Thacker / Nick Emerson | Justine James |
T: +44 (0) 1483 413500 | T: +44 (0) 20 7193 7463 |
www.sicapital.co.uk | M: +44 (0) 7525 324431 |
About W
In 2012, W Resources Plc (AIM:WRES) made the successful transition into a tungsten exploration and development company with projects in Spain and Portugal, following two acquisitions. Projects now include La Parrilla, a tungsten project in Spain and Régua and Tarouca Tungsten projects and the Portalegre gold project in Portugal.
The Company's deposits and tungsten mine developments offer a low cost, high margin resource development opportunity due to a strong market following for Tungsten, increased trading and a forecast shortage of supply. The price of tungsten has more than doubled in past three years and is in the top 5 critical metals list.
The Board is focused to explore further opportunities in the region with a view to building a mid-tier minor metal producer.
The Company was incorporated in England and Wales in 2004.
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