Wolf Minerals has secured credit approval from a syndicate of banks for a £75 million ($115 million) finance facility to go towards the development of its Hemerdon tungsten and tin project in south west England.
Wolf announced today it had received approval from UniCredit Bank, ING Bank and Caterpillar Financial for the finance facility, which is now subject to final documentation and conditions precedent.
Under terms of the funding, a portion of the facility will be supported by a guarantee provided through Germany’s untied loan guarantee scheme an a loan guarantee under similar terms by project off-takers Wolfram Bergbau und Hutton AG and Global Tungsten & Powders Corporation.
It is understood the company is seeking a total of £120 million to develop the Hemerdon project.
“This revised and increased senior debt package demonstrates the strength of the projected future cash flows to be generated by this world class, low cost tungsten and tin project and we look forward to finalising the funding package to bring this project into production, managing director Humphrey Hale said.
Wolf Minerals shares were lightly traded on the ASX today, finishing steady at 22 cents.