Wolf Minerals is to draw down an additional £10m from the 12-month secured bridge loan facility that major shareholder, Resource Capital Fund (RCF), provided in October 2016. This will take the amount received from RCF to £30m. The loans carry interest at rates between 10% and 15% per annum and may be repaid with cash or shares. RCF current holds a 56.3% interest in Wolf.
The funding will support short term working capital, whilst additional funding requirements are developed for long term self-sustainable operations at the company’s Drakelands tungsten/tin mine, in Devon. Specifically, the funding will allow the mine to continue its focus on improving the performance of the processing plant and optimising ore feed.
Wolf reports that the tungsten price continues to improve, having increased some a 40% in the last 12 months.
About Wolf Minerals
Wolf is a publicly traded company listed on London’s AIM and on the Australian Stock Exchange (ASX). Wolf’s sole mineral asset is the Drakelands tungsten and tin mine, in Devon, UK, which the company commissioned in September 2015. When fully operational, the mine will produce around 3% of global demand for tungsten (or 15% of non-Chinese demand), with the potential to expand production by over 25%.
The company’s registered office is in Perth, Australia, and operational offices are at the mine site, outside Plymouth, in the UK.
Wolf draws an additional £10 million from RCF facility (WLFE)