A bit of a holding RNS rather than full confirmation on funding but nonetheless, this news is the first real solid piece of evidence that La Parrilla is indeed heading for full mine development. Management have made promises before but today’s news confirms the first tranche of $13m will be drawn imminently and then followed up with a further $22m tranche in Q2. A staggered approach makes perfect sense from the lenders stand point and will require smooth operational and development performance from all involved. Delays will not be welcome and thus it is key that timelines are adhered to.
Contract news is likely pending funding hence today’s RNS should clear the way for the LOI’s to be converted into full scale sales contracts. Again, these commitments will require ‘delivery’ dates and as such place sensitivities upon the overall development. Nothing worse than keeping your key customers waiting. All in all, W Resources looks like it is delivering on the promises made in late 2017. 2018 will be a busy year and if all goes well, the share price should reflect the enlarged mine potential and sales growth that comes from that.
It’s been a long wait and whilst caution is still required, W Resources looks properly up and running at last.
W Resources is part of The ShareHub top ten for 2018.
RNS Number : 5680D
W Resources PLC
01 February 2018
La Parrilla funding increased to US$35m with first funding expected in February
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 funding of the La Parrilla mine development.
As the Company announced on 12 December 2017, W had received preliminary approval from a US Special Situations Fund to provide a US$30 million term loan to W Resources to fund La Parrilla, that the term loan had received preliminary approval from the investment committee and that it was subject to final due diligence and legal documentation. Financial close was expected by the end of January 2018.
W is pleased to announce that W now plans to borrow an increased amount of US$35 million with the first US$13 million expected to be drawn in early February following execution of the credit agreement and the balance of US$22 million in the second quarter of the year after satisfaction of a number conditions precedent typical for this type of term loan.
A further announcement with more details of the loan will be made on execution of the credit agreement in the coming weeks.