PERTH (miningweekly.com) – ASX-listed tungsten developer Wolf Minerals has secured some A$192-million in debt facilities and binding offtake agreements to complete the development of its Hemerdon tungsten project, in England.
The miner reported on Friday that it had signed a A$113-million project financing facility with UniCredit Bank, ING Bank and Caterpillar Financial, and secured an $82-million funding package from Resource Capital Fund.
The combined funding packages provided Wolf with the funding to start the engineering, design and procurement contract, and to purchase the properties required for the Hemerdon project development.
The funding would also provide for additional working capital for Wolf during the construction phase.
Wolf told shareholders that the Resource Capital Fund package would be drawn down first, as the majority of the conditions precedent for the funding package had already been met.
First funds were expected by the end of May, and the draw-down of both facilities remained subject to meeting standard conditions precedent for facilities of this type.
Meanwhile, Wolf on Friday also announced that it had executed a binding offtake agreement with Wolfram Bergbau und Hütten, of Austria, as well as US-based Global Tungsten & Powders.
Under the terms of the offtake agreements, Wolf would supply some 80% of the Hemerdon project’s expected average yearly tungsten concentrate output, for a minimum five years.
The period was extendable under mutual consent.
The company said that it would supply wolframite concentrates grading 65% tungsten trioxide, adding that pricing for the offtake agreement was calculated on the price published in Metal Bulletin for European Ammonium Para-Tungstate.
The Hemerdon mine was expected to produce some 345 000 t/y of tungsten trioxide and around 450 000 t/y of tin in concentrate.
Wolf was working to extend the life of the project while maintaining its production profile. Work was being undertaken to evaluate larger pits and explore underground options.