Wolf Secures Funding for Hemerdon Tungsten and Tin Development

Collected by Chinatungsten Online- Dual-listed Wolf Minerals has secured an $82-million funding package to further develop its Hemerdon tungsten and tin project, in South West England.

The funding package with Resource Capital Fund (RCF) would comprise a $75-million, 12-month secured bridge finance facility, and a $7-million consideration for the purchase of a 2% royalty on gross revenues from all metals and minerals produced at the Hemerdon project.

The amount of the drawdown available under the terms of the bridge facility would initially be limited to $40-million, until Wolf has received all the material permits, licences and approvals necessary to start construction and operation at the Hemerdon project.

The further $35-million would be available upon obtaining the required permits.

“We are delighted to secure this funding package with RFC to further progress the Hemerdon project,” said Wolf MD Humphrey Hale.

Hale said on Friday that the initial $40-million would be used to purchase the properties required under the Hemerdon project’s planning permission, design engineering, procurement, owner’s development costs and general working capital.

The bridge facility and royalty would be subject to the completion of relevant documentation and the satisfaction of typical conditions precedent, which included executing offtake and senior debt facility agreements, as well as shareholder approval.

In addition, the bridge facility would also be subject to Wolf raising A$20-million in equity. The company said on Friday that it was in advanced negotiations with a strategic investor to achieve this requirement.

The Hemerdon project has a total mineral resource of some 401-million tons, grading 0.13% tungsten, as well as an estimated reserve of 26.7-million tons, grading 0.19% tungsten.

The redevelopment of the Hemerdon mine was expected to be completed by 2013, pending approvals, and the project would become one of the world’s largest high-margin suppliers.

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