W Resources Plc received preliminary approval from a U.S. Special Situations Fund for a US$30 million term loan to fund its La Parrilla tungsten-tin mine in Spain.
The company will use the funds for its T2 development at La Parrilla, comprising 2 million tonnes per year of run-of-mine material to produce 2,700 tonnes per year of tungsten concentrate. Engineering is expected to be completed in the first quarter of 2018, with final documentation for off-take agreements underway.
W Resources decided in late August to increase debt financing for La Parrilla from US$25 million to US$30 million, after receiving a financial investment decision report that estimated total CapEx for the project at US$74.3 million.
The company said Dec. 12 that the term loan is subject to final due diligence and legal documentation, with closing anticipated in late December 2017 or in January 2018.
