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W Resources lands US$35mln loan with Blackrock

“The loan provides full funding for La Parrilla and now it is full steam ahead"

La Parrilla mine development
The first US$13mln of the loan is due to be drawn this week

W Resources PLC (LON:WRES) told investors it has secured a US$35mln loan which ensures that the La Parrilla mine development is fully funded.

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.

WATCH: W Resources secures US$35mln loan with BlackRock to fully fund La Parrilla

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."

W Resources signs up allmineral for La Parrilla plant’s new concentrator

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.

 -- Adds share price --

Quick facts: W Resources PLC

Price: 0.31 GBX

AIM:WRES
Market: AIM
Market Cap: £19.77 m
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