29 Jul 2014 13:35
29 July 2014
W Resources Plc
("W" or the "Company")
Placing to raise £1.2m
W Resources Plc (AIM:WRES), a tungsten, copper and gold mining company has completed a placement of 154,125,000 ordinary shares of 0.1p per share ("Ordinary Shares") at 0.80p per Ordinary Share to raise approximately £1.23m (the "Placing"), before expenses.
Application has been made for the new Ordinary Shares being issued in connection with the Placing to be admitted to trading on AIM in two tranches, with 121,000,000 shares expected to be admitted to trading on 4 August 2014 and 33,125,000 shares on 13 August 2014.
Following settlement, the Company will have 2,338,543,308 Ordinary Shares in issue.
The funds from the placement will be used to pay for a trailing payment on the 100 per cent. owned La Parrilla mine and to provide exploration funding.
Michael Masterman, Chairman of W, commented: "We are pleased to conclude this Placing with new and existing investors. The funds raised, combined with existing cash and tungsten sales, enables W to complete the €1.3 million payment on the acquisition of the world class La Parrilla mine in Q3 2014 and importantly enables us to drive our successful exploration and development activities in Spain and Portugal forward."
"At the La Parrilla tailings project, the ramp up to full production is on track for October and output from La Parrilla is expected to generate positive cashflows in the final quarter of 2014, growing strongly into 2015."
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 12,500,000 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 director, being Mr Michael Masterman, having consulted with Grant Thornton Corporate Finance (the Company's Nominated Adviser), confirms that he is 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 the new Ordinary Shares Dr. Byron Pirola (and related parties) will be interested in 141,209,749 Ordinary Shares in the Company, representing an interest of 6.04 per cent. of the total voting rights.
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 production 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 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 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.