5 Nov 2015 07:00
05 November 2015
W Resources Plc
("W" or the "Company")
Placing to Raise £600k
W Resources Plc (AIM:WRES), a tungsten, copper and gold mining, exploration and development company, is making good development progress on its low cost La Parrilla Fast Track Mine ('FTM') in Spain. As announced on 29 September 2015, the results received presented significant upside potential for the reduction of both capital and operating expenditures, an advantage as the operational team prepares the project for development.
The current stage of development includes key early stage engineering and procurement, enabling W to shorten the development timetable, in addition to lodging environmental performance bonds to ensure timely approvals. Key work also continues including: an updated mine plan and resource estimate; finalising the land access agreements; and securing the mining permit from the mines department of the regional authority of the Junta de Extremadura.
Completion of these key stages required additional interim funding and W has completed a placement of 120,000,000 ordinary shares of 0.1p per share ("Ordinary Shares") at 0.50p per Ordinary Share to raise approximately £600,000 (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 which is expected to occur on or around 10 November 2015.
Commenting Michael Masterman, Chairman of W Resources said: "We are very happy with the accelerated pace of development at La Parrilla and this placing enables us to get to a major milestone in the development programme.. The increased grade and upside potential at La Parrilla continue to be evaluated and we expect to have an updated resource estimate within the next three months."
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 15,000,000 Ordinary Shares amounting to £75,000.
The participation in the Placing of Mr. Masterman falls to be treated as a related party transaction under AIM Rule 13. The independent directors, being Dr. Pirola and Mr Garland, having consulted with Grant Thornton UK LLP (the Company's nominated adviser), confirm that they are satisfied that the terms of Mr. Masterman 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 3,693,937,493 Ordinary Shares in issue and Mr. Michael Masterman (and related parties) will be interested in 932,215,835 Ordinary Shares in the Company, representing 25.24 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 3,693,937,493 Ordinary Shares with voting rights. The Company has no shares held in Treasury. This figure of 3,693,937,493 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.
Enquiries:
W Resources Plc Michael Masterman T: +44 (0) 20 7193 7463 www.wresources.co.uk | Grant Thornton UK LLP Colin Aaronson / Jen Clarke / Harrison Clarke T: +44 (0) 20 7383 5100
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SI Capital Andy Thacker / Nick Emerson T: +44 (0) 1483 413500 www.sicapital.co.uk | Gable Communications Justine James T: +44 (0) 20 7193 7463 M: +44 (0) 7525 324431 |
Northland Capital Partners Limited Gerry Beaney / David Hignell (Corporate Finance) John Howes / Abigail Wayne (Corporate Broking) T: +44 (0) 20 7382 1100 www.northlandcp.co.uk |
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 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 Company was incorporated in England and Wales in 2004.