18th Mar 2014 12:03
LONDON (Alliance News) - Wolf Minerals Ltd Tuesday said it had conditionally raised about AUD182.7 million, or GBP99.2 million, in a placing, money it will use to complete the construction of the Hemerdon tungsten and tin project.
The company had been suspended from trading on the Australian Securities Exchange pending an announcement about the capital raising, but continued trading on London's AIM market.
In a statement, it said it had raised the money by placing just over 120 million shares at AUD0.30, or 16.3 pence, each. It will also undertake a share purchase plan to raise up to AUD2.0 million. The placing is conditional on shareholder approval, among other things.
Wolf said it will use the money to repay an existing USD75 million bridge facility it has with Resource Capital Fund, complete the capital expenditure on the Hemerdon project to complete the build and make it production ready, to provide ongoing working capital, and to provide funds to service bonding obligations, over-run facilities, debt service reserve account and producer shortfall guarantees.
Monday, the company said the work to build the new metal mine in the UK is underway, and production is expected to start in 2015. It is scheduled to produce 3,450 tonnes of tungsten concentrate each year.
Wolf Minerals shares were down 5.1% at 17.8 pence on AIM Tuesday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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