JOHANNESBURG (miningweekly.com) – Aim-listed W Resources has received preliminary approval from US Specialists Situations Fund for a $30-million term loan to fund the La Parrilla tungsten mine, in Spain.
The term loan is subject to final due diligence and legal documentation, with financial close targeted for late December or early January, the company reported on Tuesday.
The loan will fully fund the development of the two-million-tonnes-a-year La Parrilla mine, which will produce 2 700 t/y of tungsten concentrate. The company has signed offtake letters of intent with two customers.
"2018 looks set to be a transformational year for the company as we conclude the plant development and start production at La Parrilla, which is on track to be one of the world's largest tungsten mines, whilst remaining extremely low-cost to bring into production,” said W Resources chairperson Michael Masterman on Tuesday.
He reported that development work at La Parrilla was progressing well. Engineering was on schedule for completion in the first quarter and he said that orders for all long lead items had been placed.
The company also expects formal feedback on the grants application for a percentage of the €19.5-million plant and facilities package from the Junta de Extremadura government in January.
W Resources has submitted the environmental approval documentation to expand the mine from two-million tonnes a year to 3.5-million tonnes a year.