5 January 2022
W Resources Plc
("W" or the "Company")
La Parrilla Update and Placing for
W Resources Plc (AIM:WRES), the tungsten, tin and gold mining and exploration company with assets in
· An update on production at the La Parrilla tungsten and tin mine in
· Completion of a placement of 13,888,889 ordinary shares of 0.1p per share ("Ordinary Shares") at 6p per Ordinary Share with offtake partner, ICD Alloys & Metals LLC ("ICD") and Symmall Pty Limited to raise a total of circa £0.83m (the "Placing").
Production Guidance
Q3 2021 was W's best performing quarter, however the Q3 2021 production report outlined a number of challenges that were adversely impacting production and unfortunately, a number of these challenges continued throughout Q4 2021.
Heavy rains in December led to production stoppages caused by wet crushed ore blocking the silo. This was compounded by only having access to mid to low-grade ore, associated maintenance issues and supply chain bottlenecks for replacement parts. All of these challenges negatively impacted production during Q4 2021. However, were it not for these challenges, the Company believes production would have been very close to the lower end of the previous production guidance issued.
As a result, the Company now has to adjust full year guidance to 520t of tungsten and tin concentrate compared to previous full year production guidance of between 650t and 750t of concentrate. The Company expects to issue a Q4 2021 production report later this month.
The Company expects production in Q1 2022 to improve significantly as:
· The open mine pit has been drained of water which is giving access to higher-grade ore bodies
· The crushed ore stockpile area is expected to be finalised by the end of January 2022
· Improved maintenance solutions have now been implemented
· Spare parts stock is being built up again to avoid future bottlenecks
Placing
The challenges encountered in Q4 2021 led to unexpected pressure on cash flow and the Company is delighted by the support from offtake partner ICD which joins W's share register with an investment of
ICD the Company's offtake partner for tungsten concentrate is supportive of the Company's development and is showing a great deal of confidence in the Company and the potential of the mine at La Parrilla due to the quality of concentrate W has delivered to date.
Michael Masterman, Chairman of W Resources, commented: "A number of challenges encountered towards the end of 2021 have resulted in a much lower performance than we had envisaged. Once again the management team at La Parrilla have overcome these challenges and as we start to mine and process higher-grade ore we are seeing increased levels of production, higher recovery rates and increasing utilisation rates. Lower than expected production levels have put some stress on the Company's cash flow. I am therefore delighted with the support being offered to us by ICD."
Steve Conlin, President of ICD, commented "ICD are thrilled to be able to invest in the La Parrilla mine in
Related Party Transaction
The participation in the Placing by Symmall Pty Limited falls to be treated as a related party transaction under Rule 13 of the AIM Rules for Companies. The independent W directors, being the W directors other than Mr Michael Masterman consider, having consulted with the Company's nominated adviser Grant Thornton
Settlement and Dealings
Application has been made for the 13,888,889 Ordinary Shares being issued in connection with the Placing to be admitted to trading on AIM ("Admission"), with Admission expected to occur on or around 11 January 2022.
Total Voting Rights
Following Admission, the Company's enlarged issued share capital will comprise 146,947,146 Ordinary Shares with voting rights. The Company has no shares held in Treasury. This figure of 146,947,146 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.
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 "
Enquiries:
W Resources Plc Paul Hailes |
Grant Thornton Colin Aaronson / Harrison Clarke T: +44 (0) 20 7383 5100 |
Broker Alternative Resource Capital / Shard Capital Alex Wood T:+44 (0) 207 186 9004 Damon Heath T:+44 (0) 207 186 9952 |
Alma PR Justine James M: +44 (0) 7525 324431 wres@almapr.co.uk
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