W Resources (AIM:WRES ) announced this morning that it intends to boost production at the La Parrilla tungsten and tin project in Spain.
The group has extended its debt facility with Global Credit Opportunities, a fund managed by the world’s largest asset manager, BlackRock, by a further $7m to fund a comprehensive production increase programme and increased working capital requirements.
As reported at the beginning of the month, W and BlackRock agreed for WRES to pay BlackRock interest by way of payment in kind ("PIK") for the May and August 2020 interest payments under the loan facility and, at W's option, the November 2020 interest payment.
WRES said BlackRock continues to show support at a “pivotal point in production” at La Parrilla.
It said the initial $2.75m tranche of funds was drawn this week and the additional $7m will increase the total outstanding Blackrock facility to a principal of $47m plus accrued interest.
Shares in WRES have traded within a tight range between 0.12p to 0.13p in the past month to open at 0.122p this morning.
Commenting on the group’s La Parrilla mine, Chairman, Michael Masterman said: "Whilst we have experienced challenges with the development of the La Parrilla project in Spain, we remain resolute that the remaining plant improvements will prove successful.”
W Resources said in its half-year report that production continues to progress at La Parilla despite the effects of the coronavirus pandemic, with production in the first six months of 2020 reaching 106.5 tonnes of tungsten concentrate and 64.5 tonnes of tin concentrate.
As a result, 1H20 revenues came to £1.01m compared to £0.29m in the same 2019 period.
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