W Resources PLC (LON:WRES) has raised £1.5mln, before expenses, via a placing of 300,000,000 ordinary shares at a price of 0.5p each to new and existing shareholders to accelerate development of its Portuguese projects.
The AIM-listed tungsten, copper and gold, production, exploration and development company - with assets in Spain as well as Portugal - said the placing comes following the US$35mln BlackRock loan deal, announced in February, when its broker Turner Pope Investments (TPI) Ltd received expressions of interest from existing investors and institutional investors.
The group said the BlackRock financing and subsequent €5.3mln grant by the Junta de Extremadura Government has underpinned the development of W's flagship project La Parrilla in Spain as it heads into production in early first-quarter 2019.
W Resources added that the subsequent placing enables the group to accelerate development on its Portuguese projects, in particular at the Régua and Tarouca Tungsten projects in Northern Portugal and also consider other significant entry stage metal opportunities.
It said Régua will be prepared for trial mining through 2018 as key approvals and land access are now securely in place.
The firm added that Tarouca infill drilling will target defining high grade zones which would be integrated into the Régua plant development which is approximately 20km away.
The company said high grades at both these projects offer opportunities to further increase W tungsten production going into 2019.
In early morning trading, W Resources shares were 10.3% lower at 0.52p, just holding above the placing price.