TIDMWRES

RNS Number : 2628D

W Resources PLC

18 February 2020

18 February 2020

W Resources Plc

("W" or the "Company")

New Loan Facility and Extremadura Grant Update

W Resources Plc (AIM:WRES), the tungsten, tin and gold mining company with assets in Spain and Portugal, has finalised a EUR5m facility with the Spanish bank, Banco Santander, S.A ("Santander") which will be used to repay its existing EUR3m loan from Caja Rural de Extremadura ("Caja Rural") and provide a net EUR2m of additional working capital and liquidity.

The facility allows W to monetise the majority of the EUR5.3m Grant from Junta de Extremadura Government (the "Grant") which the Company had expected to receive in Q1 2020 and is now anticipated to receive by mid-2020. W has met all conditions by which the Grant will be awarded although receipt has been delayed by a combination of the allmineral Aufbereitungstechnik GmbH & Co construction completion delays and the normal review and verification process of the Extremadura government.

The facility interest rate is 3% per annum, payable quarterly, with no amortisation and is secured by a pledge over the rights to the Grant funds. The term of the loan is the earlier of 12 months or the receipt of the proceeds of the Grant funds.

Michael Masterman, Chairman of W Resources commented: " We are pleased to have closed this new facility with Santander which will provide additional flexibility and liquidity at low-cost to the Group. Santander is a leading European bank and we look forward to strengthening our relationship with them. We greatly thank Caja Rural for their interim support of the development of La Parrilla."

The information contained 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)    Alternative Resource Capital / 
  Ltd                              Shard Capital 
  Andy Thacker / Zoe Alexander     Alex Wood 
  T: +44 (0) 203 657 0050          T:+44 (0) 207 186 9004 
  www.turnerpope.com               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

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END

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February 18, 2020 02:00 ET (07:00 GMT)

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