20 Mar 2015 07:00
20 March 2015
W Resources Plc
("W" or the "Company")
Repayment of Bergen Facility
Placing of £375,000
W Resources Plc (AIM:WRES), a tungsten, copper and gold mining, exploration, development and production company has repaid US$250,000 of the US$800,000 Bergen convertible note in cash from proceeds from working capital that has been strengthened by the receipt of VAT refunds and the BBVA facility announced on 13 February 2015.
W intends to repay the balance of the convertible note of US$550,000 in cash within the next few weeks during which time Bergen has agreed not to convert the balance of the convertible note.
Part of the repayment of the convertible note will be satisfied by the proceeds of a placing, which the Company has completed, of 187,500,000 ordinary shares of 0.1p per share ("Ordinary Shares") at 0.2p per Ordinary Share to raise £375,000 million (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 25 March 2015.
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 80,000,000 Ordinary Shares amounting to £160,000, and Beronia Investments Pty Ltd ATF Duke Trust of which Dr. Byron Pirola (a director of the Company) is both a beneficiary and trustee, who has subscribed for 25,000,000 Ordinary Shares amounting to £50,000.
The participation in the Placing of Mr. Masterman and Dr. Pirola falls to be treated as a related party transaction under AIM Rule 13. The independent director, being Mr. David Garland, having consulted with Grant Thornton Corporate Finance (the Company's nominated adviser), confirms that he is satisfied that the terms of Mr. Masterman and Dr. Pirola's participation in the Placing are fair and reasonable insofar as the shareholders of the Company are concerned.
Following the issue of all new Ordinary Shares, the Company will have 3,073,937,497 Ordinary Shares in issue and:
- Mr. Michael Masterman (and related parties) will be interested in 870,549,169 Ordinary Shares in the Company, representing an interest of 28.32 per cent in the total voting rights; and
- Dr. Byron Pirola (and related parties) will be interested in 196,876,415 Ordinary Shares in the Company, representing an interest of 6.40 per cent in the total voting rights.
Enquiries:
W Resources Plc | Grant Thornton UK LLP |
Michael Masterman | Colin Aaronson / Jen Clarke / Harrison 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.