16th Sep 2014 11:15
LONDON (Alliance News) - Wolf Minerals Ltd Tuesday said it will commence the draw-down of the GBP75 million senior debt finance facilities at the company's world class Hemerdon tungsten and tin project in the near future.
The senior debt finance facilities comprise of a GBP70 million loan facility, which will be used to finalise construction at its Hemerdon project, and a GBP5 million bond facility.
The loan facility has a term of seven and a half years and repayments are to be made on a quarterly basis, commencing approximately six months after first production, said Wolf.
The Hemerdon project is scheduled for completion in the third-quarter of 2015, it said.
"Prior to accessing the senior debt finance facilities, the company was required to meet a significant number of conditions in relation to key aspects of the project such as permitting, equity funding and off-take. Our ability to meet all the conditions, and continue to advance the development of the project, is a testament to the company and the strength of our management team," said Managing Director Russell Clark.
"The utilisation of the senior debt finance facilities, combined with equity raised in May (of USD182.7 million) this year provides the funding to take the project through to positive cash flow," he added.
Shares in wolf Minerals were trading 2.8% lower at 15.55 pence per share Tuesday.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Wolf Minerals