W Resources Plc (LON: WRES), the tungsten, tin and gold mining company with assets in Spain and Portugal, has confirmed that funds managed by the Global Credit Opportunities platform at BlackRock have agreed to increase the existing loan facility provided to W Resources by US$5 million, with no warrants attached. Loan documentation has been executed and funds will be fully drawn this week.
The funding has been put in place to ensure W Resources continues to provide for working capital requirements enabling the team to focus on driving the ramp-up of the La Parrilla tungsten and tin mine in Spain and the advancement of the Régua tungsten mine in Portugal.
La Parrilla has now moved to 24-hour operation of the new Concentrator Plant, producing tungsten concentrate in line with shipment specifications. Production rates are steadily increasing and will be further boosted by the move to continuous operations.
W Resources Chairman, Michael Masterman commented:
“It is important for W Resources to have demonstrable funding to provide the resources for expansion. This upsizing of the BlackRock facility achieves this objective with no dilution to shareholders, enabling the team to push ahead with the production ramp-up at La Parrilla and development work at Régua as we work towards bringing our second mine on stream next year.”
The additional facility and the roll up of interest (known as payment in kind or PIK) will, on drawdown, increase the total outstanding Blackrock facility to USD49.1m