WRES.L Regulatory News (WRES)

1 November 2016

W Resources Plc

("W" or the "Company")

Placing to Raise £1 million

W Resources Plc (AIM:WRES), the tungsten, copper and gold, production, exploration and development company with assets in Spain and Portugal, has completed a placement of 192,307,693 ordinary shares of 0.1p per share ("Ordinary Shares") at 0.52p per Ordinary Share to raise £1 million (the "Placing"), before expenses to new and existing shareholders and a Director of W.

Application has been made for the new Ordinary Shares being issued in connection with the Placing to be admitted to trading on AIM which is expected to occur on or around 7 November 2016. The funds raised will be used to expand production capacity at La Parrilla, complete gold drilling at the highly prospective São Martinho gold deposit and general working capital.

Related Party Transaction

The placees include Symmall Pty Limited as trustee of the Masterman Superannuation Fund of which Mr. Michael Masterman (a director of the Company) is both a beneficiary and trustee, which has subscribed for 19,230,769 Ordinary Shares amounting to £100,000.

The participation in the Placing of Mr. Masterman falls to be treated as a related party transaction under AIM Rule 13. The independent directors, having consulted with Grant Thornton UK LLP (the Company's nominated adviser), confirm that they are satisfied that the terms of Mr. Masterman's participation in the Placing are fair and reasonable insofar as the Company's shareholders are concerned.

Following the issue of all new Ordinary Shares, the Company will have 4,360,495,974 Ordinary Shares in issue and Mr. Michael Masterman (and related parties) will be interested in 993,684,698 Ordinary Shares in the Company, representing 22.79 per cent of the Company's total voting rights.

Following admission of the new Ordinary Shares, the Company's enlarged issued share capital will comprise 4,360,495,974 Ordinary Shares with voting rights. The Company has no shares held in Treasury. This figure of 4,360,495,974 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

Turner Pope Investments (TPI) Ltd acted as Placing agent to this transaction who have introduced new and existing shareholders to this round of fundraising.

Enquiries:

About W

In 2012, W Resources Plc (AIM:WRES) made the successful transition into a tungsten production, exploration and development company with projects in Spain and Portugal, following two acquisitions.

Projects include La Parrilla, a tungsten project in Spain and Régua and Tarouca Tungsten projects and the CAA/Portalegre copper-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 Board is focused to explore further opportunities in the region with a view to building a mid-tier minor metal producer.

The Market Abuse Regulation (MAR) became effective from 3 July 2016. Market soundings, as defined in MAR, were taken in respect of the Placing with the result that certain persons became aware of inside information, as permitted by MAR. That inside information is set out in this announcement has been disclosed as soon as possible in accordance with paragraph 7 of article 17 of MAR. Therefore, those persons that received inside information in a market sounding are no longer in possession of inside information relating to the Company and its securities.