JOHANNESBURG (miningweekly.com) – Speciality metals producer Wolf Minerals has received a further £5-million from Resource Capital Fund VI (RCF VI) as short-term working capital for the Drakeland openpit mine, at the Hemerdon tungsten and tin project in Devon, south-west England.
The £5-million represents the remaining uncommitted amount of a bridge facility in place with RCF VI.
The funds under the bridge facility have been used to progress the turnaround plan at Drakeland, which Wolf said on Thursday was proceeding as planned.
The turnaround plan, which was announced in July, is aimed at achieving a sustainable production platform by the end of the year. It focuses on improving the processing plant reliability in the crushing circuit, improving the performance of the refinery to enhance production levels and reducing noise emissions from the processing plant, including low frequency noise.
Wolf reported that the primary dense media separation Phase 1 modifications have been completed and that Phase 2 would be implemented on September 9. “Initial results are encouraging with availability above target and recoveries starting to improve.”
Phase 1 modifications to the refinery were completed last week and were being commissioned. Phase 2 refinery changes were on schedule for mid-October.
Wolf reported that gravity fines modifications were under way, with initial changes taking place last week. The remainder of the works would take place over the next eight weeks to minimise the impact on production, with commissioning into early November.
“These modifications along with improved operating discipline across the business are expected to provide the necessary foundation for sustainable performance into next year,” the company stated.
Meanwhile, Wolf also reported an improving trend in the price of tungsten, with a 44% increase since December 2016 from $187/mtu to $269/mtu in August 2017.
“The combination of a rising tungsten market, improvements from the operating turnaround plan and additional proceeds from the bridge facility has provided an opportunity for the company to reassess its funding requirements to become a long-term self-sustaining business.”
Wolf in June reported that RCF VI had increased its existing bridge loan facility from £30-million to £40-million, with the potential to increase to £45-million at the discretion of RCF VI.