22nd Apr 2016 08:16
LONDON (Alliance News) - Specialty metals producer Wolf Minerals Ltd on Friday said it has agreed a GBP25 million standby subscription facility with Resource Capital Fund VI.
The terms of the facility provide that RCF VI, which is an associate of major Wolf Minerals shareholder Resource Capital Fund V, will subscribe for shares in Wolf up to a maximum amount of GBP25 million at 9.19 pence per share. Shares in Wolf Minerals were trading up 6.6% at 8.79 pence on Friday morning.
The facility is available to Wolf for a period of six months following approval and will be used to support operations at the Drakelands mine and facilitate Wolf's debt repayments.
An initial subscription of GBP16 million will be made in April.
"The approval of the facility enables Wolf to continue its ramp up of the Drakelands mine to enable the project to reach its true potential. We are starting to see price increases and remain confident that Wolf, with its large production capacity and location in a first world country will be well positioned when the market recovers," Managing Director Russell Clark said in a statement.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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