Wolf Minerals has secured additional funding from its major shareholder to support its short term working capital as it works towards identifying additional funding sources for long term self-sustainable operations at the Drakelands open pit mine.
Resource Capital Fund (RCF), which owns 56% of the company, has increased its existing bridge facility from £30m to £40m, with the potential for an extra £5m at RCF’s discretion.
Wolf has continued to experience reliability and performance issues with the ramp up of the processing plant and progress towards steady state production has been further delayed. In addition, tungsten prices remain challenging and lower than anticipated despite a constrained supply of tungsten concentrate globally.
The company will use the additional funds to advance its operational turnaround plan.
Wolf interim managing director, Richard Lucas, commented: “The Company has identified additional resources and expertise to drive improvements in operating performance and build a long term sustainable business. Despite the low-price environment for tungsten and commodities in general, the continued support of RCF VI is testament to their confidence in Drakelands and the Wolf management team.”
Wolf secures additional working capital from major shareholder (WLFE)