Wolf Minerals Limited to Establish £25m Equity Facility with Resource Capital Funds

Wolf Minerals Limited (LON:WLFE) has today provided the following announcements, firstly on its recently developed Drakelands open pit mine (“Drakelands”) at the Company’s world class Hemerdon tungsten and tin project in Devon, southwest England, for the three months’ period to 31 December 2015 (the “Quarter”). Second that it has executed a binding term sheet with Resource Capital Fund VI L.P. (“RCF VI”) to provide a standby equity facility to strengthen the company’s balance sheet during the ramp-up of the processing plant at the Drakelands open pit mine (“Drakelands”).

Commenting on the quarter performance, Wolf’s Managing Director, Russell Clark said: “The handover of the processing plant in the latter part of the previous quarter was a major milestone in the development of Drakelands. The focus in the December quarter was on understanding the plant in an operating environment and building plant run times. The Company is looking towards the longer term and to this end has made an application to extend the life of the Drakelands planning permission as well as undertaking a number of geological projects to further improve understanding of the ore body.”

Wolf took full operational control of the Drakelands processing plant from GRES in the latter part of the September 2015 quarter. Wolf continues to work with GRES on the punch list of items that were outstanding at hand over and this work is expected to be completed in the March 2016 quarter. During the Quarter the Company concentrated on building understanding of the plant in an operational environment and increasing overall run times.

The terms of the standby equity facility provide that RCF VI, an associate of current major shareholder Resource Capital Fund V L.P. (“RCF V”), will subscribe for a maximum amount of £25 million (approximately A$51 million) at 9.19p (approximately A$0.19) per share (“Issue Price”), an approximate 13% premium to the share price as at close on 28 January 2016 on the ASX (also an approximate 13% premium to the share price as at close on 28 January 2016 on the LSE) (the “Facility”).

The Facility enables the company to request RCF VI to subscribe for fully paid, ordinary shares at the issue price at any time during the six month period following establishment. Drawdowns from the Facility will be used to support operations at Drakelands and facilitate the company’s debt repayments.

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