Perth-based Wolf Minerals has received a $16.8 million extension to its existing debt facility with Resource Capital Funds, as problems at its Drakelands tungsten mine in England continue.
Wolf said today its bridge facility with RCF, which was arranged in October last year, had increased to £40 million and would allow it to implement an operational turnaround plan at Drakelands, which has suffered reliability and performance issues with the processing plant, delaying steady-state production.
The new arrangement provides for RCF to provide a further £5 million at its discretion.
“The additional proceeds under the bridge facility will provide funds for the advancement of the operational turnaround plan and will enable the company to continue to progress discussions with third parties as part of its previously announced strategic review of the financial alternatives available in the current tungsten price environment,” Wolf said in a statement.
“Tungsten prices remain challenging and lower than anticipated despite constrained supply of tungsten concentrate globally.
“Consequently the implementation of an operational turnaround plan, primarily focusing on building and operating platform which can support further volume increases and optimise performance, is underway.”
Wolf shares were 8.3 per cent lower to 5.5 cents each at the close of trade.