TIDMWRES
RNS Number : 2071X
W Resources PLC
26 August 2020
26 August 2020
W Resources Plc
("W" or the "Company")
Atlas Facility and La Parrilla Update
W Resources Plc (AIM:WRES), the tungsten, tin and gold mining
and exploration company with assets in Spain and Portugal, is
pleased to provide an update on the Atlas Capital Markets LLC
("Atlas") facility, and the La Parrilla project.
-- Atlas has converted a small part of its loan to equity under the terms of the agreement.
-- The La Parrilla management team has implemented a revised and
more comprehensive plan to boost production and move to an
operating cash flow positive position, which subject to continued
improvement in operations and some modest strengthening of metal
prices is expected in the first half of 2021.
-- Recoveries of tungsten and tin have continued to improve at
La Parrilla following a realignment of the mine plan around the
high recovery ore in the main fast track mining area and in the pit
in general. Under the new management, plant availability and
performance has increased.
-- The external environment with COVID-19 and global metal
prices remains challenging and cost control and working capital
management remains a priority.
Atlas Capital Markets Facility
Atlas has issued a Conversion Notice for GBP100,000 of
Convertible Bonds, a small portion of the first GBP500k tranche
drawn from this GBP4m facility. W will issue 75,187,969 ordinary
shares of 0.1p per share ("Ordinary Shares") at a conversion price
of 0.1330p per Ordinary Share.
Application has been made for the admission of the Ordinary
Shares. Following admission of the new Ordinary Shares, which is
expected on or around 1 September 2020, the Company's enlarged
issued share capital will comprise 6,775,230,746 Ordinary Shares
with voting rights. The Company has no shares held in Treasury.
This figure of 6,775,230,746 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.
La Parrilla Tungsten and Tin Project, Spain
Over the last three months an extensive programme of
metallurgical and geological work has been underway to refine a
plan to substantially increase the production of tungsten and tin
from the La Parrilla mine. An updated plan has been agreed and
commenced, with the objective of increasing production and moving
to a cash flow positive position in the first half of 2021 subject
to metal prices.
A key focus, as reported in the Q2 2020 report, has been to
increase tungsten recoveries which have lagged behind the solid
performance with tin recoveries and production. In addition to
implementing an improved maintenance programme to fundamentally
increase plant operation and availability, the key focus has been
one of realigning the mine plan around the high recovery ore in the
main fast track mining area and in the pit in general. Ore mined at
the southern edges of the mining area exhibited lower recoveries
due to mineralogical alteration and low-grade vs recovery
properties. Ore feed from the core areas of the mine has
demonstrated much stronger recoveries and henceforth will be the
focus of mining activities. Recovery is increasing with the deeper
benches as the near surface oxidised material has been exhausted
and geo-metallurgical grade control improved.
The programme has commenced with the objective of increasing
production and moving to a cash flow positive position in H1
2021.
COVID-19 and Tungsten and Tin Prices
The tungsten market remains subdued with the European APT price
sitting at US$200-210/mtu while tin prices have strengthened to
around US$17,500 per tonne. Demand in China has improved, however
demand in Europe and the USA remains weak reflecting the economic
dislocation caused by COVID-19.
COVID-19 cases have increased in Spain and remain an operational
challenge. La Parrilla continues to export both tungsten and tin to
its customers. During July, while an extensive programme of
metallurgical and geological wor k to boost recoveries was being
completed, the plant was run on a limited shift basis to conserve
costs while recovery issues were investigated.
Michael Masterman, Chairman of W Resources commented: "In these
unprecedented and volatile times we are pleased to have the
facility in place with Atlas.
"At La Parrilla, tungsten recoveries have started to improve
with mining moving to the deeper benches and with the focus on the
core areas of the mine. With the implementation of the programme
underway and with patience we expect to be able to move to higher
production rates."
Investors Webinar
Michael Masterman will host an investor webinar on Thursday 3
September 2020 at 12.00pm. For those wishing to participate, please
register your interest with details of your name and questions to
wres@almapr.co.uk . The connection details will be sent ahead of
the call.
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: +44 (0) 20 7383 5100
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) 20 7186 9004
www.turnerpope.com www.altrescap.com
Damon Heath
T:+44 (0) 20 7186 9952
www.shardcapital.com
Alma PR
Justine James
T: +44 (0) 20 3405 0205
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.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDKKABKFBKKCFB
(END) Dow Jones Newswires
August 26, 2020 04:11 ET (08:11 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
