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W Resources New Loan Facility and Extremadura Grant Update

W Resources Plc (LON:WRES), the tungsten, tin and gold mining company with assets in Spain and Portugal, has finalised a €5m facility with the Spanish bank, Banco Santander, S.A which will be used to repay its existing €3m loan from Caja Rural de Extremadura and provide a net €2m of additional working capital and liquidity.

The facility allows W to monetise the majority of the €5.3m Grant from Junta de Extremadura Government which the Company had expected to receive in Q1 2020 and is now anticipated to receive by mid-2020. W has met all conditions by which the Grant will be awarded although receipt has been delayed by a combination of the allmineral Aufbereitungstechnik GmbH & Co construction completion delays and the normal review and verification process of the Extremadura government.

The facility interest rate is 3% per annum, payable quarterly, with no amortisation and is secured by a pledge over the rights to the Grant funds. The term of the loan is the earlier of 12 months or the receipt of the proceeds of the Grant funds.

Michael Masterman, Chairman of W Resources commented: “We are pleased to have closed this new facility with Santander which will provide additional flexibility and liquidity at low-cost to the Group. Santander is a leading European bank and we look forward to strengthening our relationship with them. We greatly thank Caja Rural for their interim support of the development of La Parrilla.”

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