W Resources PLC La Parrilla Ramp-Up Finance Update (6328T)
15 Noviembre 2019 - 9:05AM
UK Regulatory
TIDMWRES
RNS Number : 6328T
W Resources PLC
15 November 2019
15 November 2019
W Resources Plc
("W" or the "Company")
La Parrilla Ramp-Up Finance Update
W Resources Plc (AIM:WRES), the tungsten, tin and gold mining
company with assets in Spain and Portugal, has advanced a funding
package of circa EUR2.78m. The funds will be used to advance the
ramp-up of La Parrilla to design capacity and to provide working
capital to supplement the Company's existing cash resources of
approximately EUR155k. An initial amount of EUR1.358m of this has
been secured through: an equity placement of GBP289k (EUR330k) at
0.40p, loans from Directors of GBP344k (EUR392k); and Blackrock has
agreed that an additional 50% of the November interest payment,
amounting to US$700k (EUR636k) can be added to the existing debt
facility (known as paid in kind). Work is advanced but not yet
concluded on the second tranche which is an additional debt
facility from either existing or new bank or finance providers of a
minimum of EUR1.0m, which are subject to credit committee and loan
documentation processes.
Until the increased or new facilities are completed, the
Directors remain in a closed period and therefore cannot deal in
any equity or equity linked instruments. Directors have hence
provided loans as they are restricted from equity participation
during the close period.
Share Placement
The Company has completed a placement of 72,250,000 ordinary
shares of 0.1p per share ("Ordinary Shares") at a price of 0.40p
per Ordinary Share to raise GBP289,000 (approximately EUR329,909)
(the "Placing") before expenses.
The funds raised from the Placing will be used to provide
working capital during the ramp-up period.
As part of the Placing, the Company has granted share options
over 43,800,000 new Ordinary Shares to two Spanish Investors (the
"Options"), at an exercise price of 0.40p per Ordinary Share. The
Options will be exercisable at any time until their expiry date of
30 November 2020. Following the issue of the Options, there will be
a total of 313,800,000 share options granted over unissued Ordinary
Shares, representing 4.99% of the Company's share capital of
6,288,427,640 Ordinary Shares following the issue of the 72,250,000
new Ordinary Shares.
Settlement and Dealings
Application will be made for the new Ordinary Shares being
issued in connection with the Placing to be admitted to trading on
AIM with admission expected to occur on or around 22 November
2019.
Total Voting Rights
Following admission of the new Ordinary Shares, the Company's
enlarged issued share capital will comprise 6,288,427,640 Ordinary
Shares with voting rights. The Company has no shares held in
Treasury. This figure of 6,288,427,640 Ordinary Shares may be used
by shareholders in the Company as the denominator for the
calculations by which they will determine if they are required to
notify their interest in, or a change in their interest in, the
share capital of the Company under the FCA's Disclosure Guidance
and Transparency Rules.
As announced on 16 September 2019, the Spanish investor who
indicated interest to invest EUR2m on the same terms as the
September 2019 placement has not yet secured investment funds
approval and the W Board assumes this opportunity has now
lapsed.
Debt Finance Update
W Resources has been in advanced discussions with existing and
new Spanish banks and debt providers in order to increase debt
funding lines by a minimum of EUR1m to support the ramp-up. Credit
committee processes and legal documentation are advanced but there
is of course no firm commitment until such processes are complete.
W will update the market in due course.
BlackRock Financial Management Inc. has agreed to continue to
allow the Company to capitalise 50% of the interest amounting to
US$700,174 on the US$35m loan facility due on the next payment date
of 15 November 2019.
In the meantime, in order to provide interim funding, Beronia
Investments Pty Ltd ATF Duke Trust, of which Dr Byron Pirola (a
director of the Company) is both a beneficiary and trustee has lent
the Company a short term loan totalling GBP100,000, Symmall Pty
Limited, of which Mr Michael Masterman (a director of the Company)
is both a beneficiary and trustee, has lent the Company a short
term loan totalling GBP200,000 and Mr James Argalas (a director of
the Company) has lent the Company a short term loan totalling
EUR50,000. The loans are unsecured and carry an interest rate of
10% per annum.
The loans by directors constitute related party transactions for
the purposes of AIM Rule 13. The independent directors, having
consulted with the Company's nominated adviser, Grant Thornton UK
LLP, consider that the terms of the related party transactions are
fair and reasonable insofar as the Company's shareholders are
concerned.
Grant Update
With regard to the EUR5.3 million grant from the Junta de
Extremadura, this is advancing with the normal process of
documentation submission and verification. Given the pending
holiday season and end of Extremadura 2019 budget year we have now
been guided to expect grant proceeds in Q1 2020. The funding
package outlined above is expected to provide sufficient funding
until receipt of the Grant proceeds
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 / Seamus Fricker
T: +44 (0) 20 7193 7463 T: +44 (0) 20 7383 5100
www.wresources.com
Joint Broker Joint Broker
Turner Pope Investments (TPI) Ltd Alternative Resource Capital /
Andy Thacker Shard Capital
T: +44 (0) 203 657 0050 Alex Wood
www.turnerpope.com T:+44 (0) 207 186 9004
www.altrescap.com
Damon Heath
T:+44 (0) 207 186 9952
www.shardcapital.com
Alma PR
Justine James
M: +44 (0) 7525 324431
wres@almapr.co.uk
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
UPDBABATMBMBBBL
(END) Dow Jones Newswires
November 15, 2019 10:05 ET (15:05 GMT)
W Resources (LSE:WRES)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
W Resources (LSE:WRES)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024