W Resources Plc (AIM:WRES) the tungsten, copper and gold exploration and development company with assets in Spain and Portugal is pleased to provide an update on the development and financing of its La Parrilla tungsten and tin project in Spain. In summary, W has initiated a process to raise approximately US$24m in debt finance1 to fund the US$27m T2 Project (2 million tonnes per annum (“tpa”) ROM), (the “T2”), of the La Parrilla mine development. Completion of construction and commissioning of T2 is scheduled for Q2 2018.
As quoted in the press release:
Chairman of W, Michael Masterman, commented: “La Parrilla has a very robust mine expansion and development plan and we are pleased to have now confirmed the increased JORC resource update and mine plan and be able to provide an update to the market on our development and debt financing programme. The credit metrics for the debt component of the financing are strong and we are engaged in discussions with multiple debt financiers and the finance team, led by BurnVoir, is highly confident of completion of a debt financing of around US$24 million1 . La Parrilla’s comparatively low capital cost allows us to target the financing of La Parrilla with a sustainable quantum of debt with limited dilution to existing shareholders. “Securing the right debt package has been a longer process than first anticipated, which has pushed the timeline to production back some months, however the Board are confident of the revised timeline in respect of the completion of construction of the T2 phase in Q2 2018, with production restarting in Q3 2018.”
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