BlackRock Financial Management is providing the loan, which will have a five-year schedule term (with the option for early repayment) and it has an average interest rate of 12.6%. The lender will also receive an upfront fee as well as share warrants.
The first US$13.12mln will be drawn this week, W Resources said, and the balance is anticipated in the second quarter. Both drawdowns will require customary conditions to be satisfied.
"We are delighted to have partnered with BlackRock to obtain this US$35mln secured term loan facility,” said Michael Masterman, W Resources chairman.
“The loan provides full funding for La Parrilla and now it is full steam ahead.
"Engineering and planning at La Parrilla is advanced and the three primary construction contracts have been awarded. As outlined, the timetable to deliver the project is 12 months from the close of financing which moves the Company into production in Q1 2019."
David Trucano, credit portfolio manager at BlackRock, meanwhile, said: “We are pleased to provide funding on behalf of our clients to restart operations at La Parrilla, one of the most efficient mines in Europe.
“We believe the current dynamics of the tungsten market present a unique opportunity for W and our clients."
In late afternoon trading, W Resources shares were down 0.8% at 0.6p.
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