W Resources Draws £500,000 from Atlas Convertible Bond Facility

W Resources PLC stated that it has drawn a further GBP 500,000 from the GBP 4 million convertible bond financing with Atlas Capital Markets. The company owns tungsten assets in Spain and Portugal. This is the second drawdown obtained by the facility on March 30, 2020. The convertible bond file is a 5% coupon and has a maturity of 3 years.

W Resources is building a European mining company focused on delivering long term production of tungsten, a key strategic metal with strong market fundamentals. The company's strategy is to build a European mining company focused on delivering long term production of tungsten, a key strategic metal with strong market fundamentals. With a focus on building a world class tungsten company, its flagship project, La Parrilla in Spain is one of the world's largest tungsten mines, which commenced production in November 2019 and is funded by BlackRock.

As part of the agreement, Atlas can convert the bonds into W Resources shares by issuing a conversion notice at price of 95% of the three-day volume-weighted average price selected within the 15 days prior to the issuance of the Atlas conversion notice.

W Resources Chairman Michael Masterman said in a statement: "These funds will be used to advance the development of Régua and provide the company with additional working capital."

"It is very important that once the Covid-19 restrictions are relaxed, the company will be able to conduct mining activities in Régua and take this opportunity to produce 8-12% tungsten trioxide concentrate, which is then transported to the La Parrilla processing plant Upgrade to 60% WO3."

Atlas convertible bond financing is unsecured and belongs to BlackRock's financial management loan facility. Any repayment requires BlackRock's consent.

W Resources has received a notice of conversion of 100,000 pounds convertible bonds from Atlas, which is the third part of the agency's first 500,000 pounds. Therefore, the company will issue more than 96.5 million new shares at a conversion price of 0.1036p.

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