W Resources Plc (LON: WRES), the tungsten, copper and gold mining company with assets in Spain and Portugal, announced today that it has completed a placement of 185,511,200 ordinary shares of 0.1p per share at a price of 0.50p per Ordinary Share to raise £927,556 before expenses, to two Spanish Investors.
The Board believes that it is in the interest of the Company to broaden the Spanish investor base and deepen regional support. The investors are family offices of successful Spanish businesses in the Extremadura region, where the La Parrilla mine is located.
The funds raised from the subscription will be used to provide additional working capital for the Company during the remaining commissioning process which, despite the high quality build, has been delayed by over a quarter as a result of a failure by allmineral Aufbereitungstechnik GmbH & Co. KG of Germany to complete the La Parrilla Concentrator Plant according to the contracted schedule.
Michael Masterman, Chairman of W Resources, commented:
“It is important to balance the final phase of funding on La Parrilla as we head into the most exciting stage of this project, with first ore to the new concentrator plant starting later this month. Ensuring that commissioning is completed to the highest standards has been the priority and we are pleased to receive support from the Spanish investment community, who invested at a premium to current share price, which takes the Company to this next important phase.”
The Company will need to add additional funding over the next two months prior to the expected receipt of grant funding and start of commercial production in order to maintain the pace at which the La Parrilla mine is being developed and has received interest from potential debt and Spanish equity providers. A third Spanish investor has indicated interest to invest €2m on the same terms as this placement but the investment is subject to funds approval which they will target to achieve within the next month. W will keep the market informed in due course.
It is also the intention of the Chairman, Michael Masterman and possibly other Directors to subscribe for shares, on the same terms, following the issue of the Company’s half year results as the Company is currently in a closed period.
Settlement and dealings
Application will be made for the new Ordinary Shares being issued in connection with the Placing to be admitted to trading on AIM with admission expected to occur on or around 20 September 2019.
Total Voting Rights
Following admission of the new Ordinary Shares, the Company’s enlarged issued share capital will comprise 6,216,177,640 Ordinary Shares with voting rights. The Company has no shares held in Treasury. This figure of 6,216,177,640 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA’s Disclosure Guidance and Transparency Rules.