The AIM-listed tungsten-focused miner said the grant was for IRS’s La Parrilla tungsten and tin project in the region and equated to 32% of the €16.6mln plant and facilities package that qualified for grant contribution.
The group added that the grant would be paid by the Extremadura government to IRS once the fulfilment of conditions (including the completion of the plant and facilities and meeting target employment levels, as outlined in the application, had been verified by an audit by the regional government authorities. The conditions need to be fulfilled by 14 March 2020.
W Resources said the award, combined with the recent US$35mln loan facility from Blackrock, “underpins the advancement of the Company, in particular for the development of La Parrilla, which once fully developed will be the largest tungsten mine in Europe.”
Michael Masterman, chairman of W Resources, said: “The success of our application [for the grant] is testament to the relationship and hard work from our Country Manager, Fernando de la Fuente and Mining and Government Director, Celestino Parejo. Fernando and Celestino are on the ground and have built great local relationships, which further strengthen our exciting world class low-cost La Parrilla tungsten and tin mine development.”
He added: "The provision of a grant for such a large proportion of our La Parrilla mine development is very positive and contributes further to our strong funding position. Importantly, the award of the grant funds strongly align the Junta de Extremadura Government with the success of the La Parrilla project and we are very appreciative of their support."
W Resources shares were up 1.8% at 0.56p in early morning.