Wolf Minerals, a specialty minerals exploration and development company, has concluded a funding package of A$213m ($212m) during the June 2013 quarter for its Hemerdon Tungsten and Tin Project in Devon, in Southwest England.
The funds comprise senior debt facilities of A$123m ($212m) from UniCredit Bank AG London Branch, ING Bank N.V. and Caterpillar Financial SARL and A$90m ($82.60m) funding from Resource Capital Fund V L.P. (RCF).
RCF includes a 12-month secured Bridge Finance Facility A$82m ($75.26m), and A$8m ($7.34m) to acquire a 2% Royalty by RCF on gross revenues from all the output from the Hemerdon project. Proceeds from these funds will be employed to commence the EPC Contract and continue purchase of properties at the Hemerdon site, besides facilitating the development costs and working capital.
Wolf Minerals has also reported the commencement of A$123m ($112.89m) EPC contract by GR Engineering Services, representing the first drawdown of RCF funding. The contract is for a 3million tons per annum tungsten and tin mineral processing plant as well as associated infrastructure.
Also during the quarter, the company entered into five-year binding off-take agreements with Wolfram Bergbau und Hütten AG and Global Tungsten & Powders to supply 80% of Hemerdon’s estimated annual tungsten concentrate output.
The project is expected to have annual production of 345,000 metric ton units of tungsten trioxide concentrates and about 450 tons tin concentrates.