Aim-listed W Resources has secured a €3-million loan facility with Caja Rural de Extremadura that provides an advance of funding against the €5.3-million grant awarded by the Junta de Extremadura government, which is expected to be paid to the company in the fourth quarter of 2019.
The €3-million loan has an interest rate of 1.75% a year for a term of 15 months, which will provide W Resources with an efficient low-cost source of funds, the tungsten, tin and gold developer indicated in a statement on Thursday.
The loan will also provide solid reserves of working capital at what is highlighted as a pivotal point in the development’s timeline as the company advances the ramp-up of theT2 phase of the La Parrilla mine in Spain to design capacity.
“We are pleased to have secured the €3-million facility with Caja Rural,” commented W Resources chairperson Michael Masterman.
“The loan is a cost-effective way to enable advanced access to the Junta de Extremadura government grant as part of the overall funding as we near completion of the T2 development at La Parrilla.”