London-listed W Resources (AIM:WRES) has raised £756,000 via a placing of just under 210m new shares to new Spanish investors at a price of 0.36p per share.
The mining company with assets in Spain and Portugal said the funds raised will be used to advance development work at the Régua project and to provide additional working capital for the company.
The news follows the first blast at the Régua mine in Northern Portugal which W Resources told investors was safely and successfully completed last week.
The first blast has opened up the RL240m adit zone which will cover 122 metres prior to intersecting ore and signifies ‘an important milestone’ for the project located in Portugal.
Shares in W Resources were trading 23.26% higher at 0.265p during Tuesday trading.
"It's important to have the continued strong support of the Spanish investors at a time of volatility. Funds will be used to advance the Régua mine and provide a strong base of working capital for W Resources,” said Michael Masterman, Chairman of W Resources.
Meanwhile, ramp up at the La Parrilla mine in Spain continues with the plant seeing a material step change improvement in recoveries and overall production rates this month following a planned shutdown in February 2020.
In addition, W Resources announced that its Director, Dr Byron Pirola, will retire from the Board on 30 March 2020 whilst retaining his core shareholding in the company.
W Resources said that a full update on La Parrilla production for the March quarter and developments at Régua is anticipated for April 2020.
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