European-focused mining company, W Resources (AIM:WRES) , informed investors on Tuesday that it had put in place a €5m facility with commercial bank, Banco Santander.
The sum will repay the group’s existing €3m loan from Caja Rural de Extremadura whilst providing a net €2m of additional working capital and liquidity.
The company, which is focused on tungsten production, will monetise the majority of the €5.3m grant from Junta de Extremadura Government which it had expected to receive in the first quarter of 2020, and which it is now likely to receive in mid-2020.
The statement outlined that all conditions had been met by W Resources, and that the receipt had been delayed due to a combination of construction completion delays and the normal review and verification process of the Extremadura government.
Shares in W Resources were trading 3.33% lower at 0.29p during Tuesday trading.
“We are pleased to have closed this new facility with Santander which will provide additional flexibility and liquidity at low-cost to the Group,” said Michael Masterman, Chairman of W Resources.
He added, “Santander is a leading European bank and we look forward to strengthening our relationship with them.”
The Santander facility interest rate is 3% per annum, the company noted, which is payable quarterly with no amortisation and is secured by a pledge over the rights to the grant funds.
W Resources, which owns assets in both Spain and Portugal, announced the commencement of operations at its Régua tungsten mine in Northern Portugal earlier this month.
Régua is the group’s second mine to come on stream following in the footsteps of the group’s La Parrilla site which commenced production during the end of 2019.
In a Feburary statement, W said that it had transitioned to full quarterly production reporting and would provide a full update in April 2020 following the close of the March quarter.
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