W Resources PLC BlackRock Additional US$7m Loan Facility (4903B)

TIDMWRES

RNS Number : 4903B

W Resources PLC

08 October 2020

8 October 2020

W Resources Plc

("W" or the "Company")

BlackRock Additional US$7m Loan Facility and Amendment Update

W Resources Plc (AIM:WRES), the tungsten, tin and gold mining company with assets in Spain and Portugal, announces that funds managed by the Global Credit Opportunities platform at BlackRock Financial Management Inc. ("BlackRock") have agreed to increase W's existing loan facility ("Loan Facility") by an additional US$7 million.

The additional funding will in part be utilised to implement a comprehensive production programme to boost production at the La Parrilla tungsten and tin project in Spain and provide a significantly increased working capital buffer.

As reported on 1 September 2020, W and BlackRock had agreed for W to pay BlackRock interest by way of payment in kind ("PIK") for the May 2020 and August 2020 interest payments under the Loan Facility and, at W's option, the November 2020 interest payment. This PIK Loan Facility amendment has now been finalised along with the agreement to increase the Loan Facility by an additional US$7m which is subject notarisation in Spain and Portugal.

Under the amendment agreement, warrants to subscribe for 96,000,000 ordinary shares of 0.1p each on a 1:1 basis in the Company at a strike price of 0.36p (equivalent to 1.2% of the fully diluted capital of the Company) were issued for the May 2020 PIK payment and warrants equivalent to 2% of the fully diluted capital of the Company will be issued for the August 2020 PIK payment. Should W PIK the November 2020 interest payment, it will issue warrants equivalent to 3% of the fully diluted capital of the Company. In addition, warrants equivalent to 3.5% of the fully diluted share capital of the Company will be issued in consideration of the increase in the Loan Facility. All shares issued under the warrant agreement rank pari passu.

Chairman, Michael Masterman commented : "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. This confidence is further underpinned by the continued support from BlackRock at this pivotal point in production at La Parrilla. The initial US$2.75m tranche of funds has been drawn this week. The additional facility will, once fully drawn down, increase the total outstanding Blackrock facility to a principal of US$47 million plus accrued interest ."

The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

Enquiries:

 
 W Resources Plc                  Grant Thornton UK LLP 
  Michael Masterman                Colin Aaronson / Jen Clarke / 
  c/o Alma PR                      Seamus Fricker 
  www.wresources.com               T: [phone] 
 Joint Broker                     Joint Broker 
  Turner Pope Investments (TPI)    Alternative Resource Capital / 
  Ltd                              Shard Capital 
  Andy Thacker / Zoe Alexander     Alex Wood 
  T: [phone]          T:[phone] 
  www.turnerpope.com               www.altrescap.com 
                                   Damon Heath 
                                   T:[phone] 
                                   www.shardcapital.com 
 Alma PR 
  Justine James 
  T: [phone] 
  M: [phone] 
  [e-mail] 
 

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October 08, 2020 02:02 ET (06:02 GMT)