WRES.L

W Resources Plc
W Resources PLC - BlackRock Additional US$5.5m Loan Facility
2nd March 2022, 07:00
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RNS Number : 3454D
W Resources PLC
02 March 2022
 

 

 

 

 

 

2 March 2022

W Resources Plc

("W" or the "Company")

BlackRock Additional US$5.5m Loan Facility and Amendment Update

W Resources Plc (AIM:WRES), the tungsten, tin and gold mining company with assets in Spain and Portugal, announces that one or more funds and accounts managed by BlackRock Financial Management Inc. ("BlackRock") have agreed to increase W's existing loan facility ("Loan Facility") by an additional US$5.5 million.

The additional funding will in part be used to fund some items of Capital Expenditure at the La Parrilla mine, including additional plant and equipment, completion of the crushed ore stockpile, improved laboratories and improved buildings for both finished goods and spare part stocks as well as providing an increased working capital buffer.

Under the amendment agreement, the cash interest rate from now until maturity remains unchanged whilst the Payments in Kind interest rate will accrue at a small premium to the cash interest rate. Warrants to subscribe for 61,351,025 W ordinary shares of 0.1p each at par, equal to 25% of the fully diluted share capital of the Company, will be issued to BlackRock in consideration of the Loan Facility.

All previous share warrants totalling 54,673,473 issued to BlackRock up until February 2022 and representing 22.9% of the fully diluted share capital have been cancelled.

Chairman, Michael Masterman commented: "Whilst we have experienced a number of challenges over the previous four months, I believe the Company is now well positioned to bring about an increase in concentrate production.

This confidence is further underpinned by the continued support from BlackRock at this pivotal point in production at La Parrilla. The initial US$2.5m tranche of funds has been drawn down and funds should be received later this week. The additional facility will, once fully drawn down, increase the total outstanding BlackRock facility to a principal of US$53 million plus accrued interest of circa US$25 million."

The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

Enquiries:

W Resources Plc

Paul Hailes

investor@wresources.com

www.wresources.com

Grant Thornton UK LLP

Colin Aaronson / Harrison Clarke / Samuel Littler

T: +44 (0) 20 7383 5100

Broker

Alternative Resource Capital / Shard Capital

Alex Wood

T:+44 (0) 207 186 9004

www.altrescap.com

Damon Heath

T:+44 (0) 207 186 9952

www.shardcapital.com

Alma PR

Justine James

M: +44 (0) 7525 324431

wres@almapr.co.uk

 

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