Wolf Minerals shareholders have approved the establishment of a standby equity facility of up to £25 million with Resource Capital Fund (RCF). The company announced the agreement with its major shareholder, which holds an interest of almost 42%, in January this year. The facility will enable Wolf to strengthen its balance sheet during the ramp-up of the processing plant at the Drakelands open-pit tungsten mine, in Devon.
Under the terms of the standby equity facility, RCF will subscribe for a maximum amount of £25 million at 9.19p per share, an approximate 13% premium to the share price as at close on 28 January 2016, at any time during the six-month period following establishment.
Drawdowns from the facility will be used to support operations at Drakelands and facilitate the company’s debt repayment.
In other news, the company has appointed Alan Fearon as general manager at the mine to replace operations manager, Jeff Harrison, who is retiring from full time employment.
Wolf shareholders approve £25 million equity facility: WLFE