Wolf Minerals (AIM: WLFE, ASX:WLF) has secured an additional £10m in funding from major shareholder Resource Capital Fund VI to help it complete the operating turnaround plan at its Drakelands tungsten/tin mine. This increases the existing bridge facility from £45m to £55m.
The key elements of the turnaround plan are modifications to the dense media circuit (completed); modifications to the refinery (Phase 1 completed and delivering an increase in throughput and availability; Phase 2 planned for November); and modifications to the recovery of the gravity fines circuit to improve recoveries and the grade of pre-concentrate presented to the refinery (scheduled for November).
RCF’s bridge facility is being increased after being put in place in October 2016 and amended in June 2017 and the additional £10m is being provided as a subordinated loan after the existing facility switched to a subordinated loan on 21 October 2017.
RCF, which currently owns 56% of Wolf, may elect to convert the subordinated loans to subordinated convertible notes. The minimum conversion price of the current £45m bridge facility amount has now been set at the lesser of A$0.09 per share and the price of any subsequent equity issued as part of any broader recapitalisation transaction.
Meanwhile, Wolf reports that the price of tungsten has increased 50% since December 2016, from US$187/mtu to US$280/mtu in October, with supply of raw material tight.
Wolf secures additional financing to complete turnaround plan: WLFE