TIDMWRES
RNS Number : 0734F
W Resources PLC
16 February 2018
16 February 2018
W Resources Plc
("W" or the "Company")
US$35m Loan Facility Finalised with BlackRock to Fund La
Parrilla
W Resources Plc (AIM:WRES), the tungsten, copper and gold
exploration and development company with assets in Spain and
Portugal, is delighted to announce that the Company has signed a
Credit and Guaranty Agreement (the "Agreement") with the lenders
thereunder (the "Lenders"), including one or more funds managed by
BlackRock Financial Management Inc. ("BlackRock") to provide a
US$35 million secured term loan facility to W Resources to fund the
La Parrilla mine development (the "Loan").
The first US$13.125 million is expected to be drawn this week
after satisfaction of the conditions precedent applicable to such
funding, with the balance of US$21.875 million expected to be
committed and funded in Q2 2018, after the satisfaction of a number
of conditions precedent, including those typical for this type of
term loan.
The key terms of the Loan are as follows:
-- The Loan is for a scheduled term of five years, with a two
year non call period. The Company has the right to repay the Loan
after two years for a premium of 5%, after three years for a
premium of 3%, and after four years for no premium;
-- Subject to any early repayment permitted or required under
the Agreement, repayment will made by way of a cash flow sweep,
utilising free cash to repay the loan;
-- The Loan is subject to an average 5 year interest rate of
12.6%, being 14% in the first year, 13% in the second year and 12%
thereafter;
-- First year interest is Payable in Kind ("PIK") and added to
the principal, while 50% of the second year interest is PIK and 50%
is payable in cash;
-- Lenders will receive a non-refundable upfront fee of 3% of
the face value of each of the respective Loan disbursements;
-- Lenders will receive warrants totalling 5% of W's fully diluted equity.
Michael Masterman, Chairman of W Resources commented: "We are
delighted to have partnered with BlackRock to obtain this US$35
million secured term loan facility. The Loan provides full funding
for La Parrilla and now it is full steam ahead.
"Engineering and planning at La Parrilla is advanced and the
three primary construction contracts have been awarded. As
outlined, the timetable to deliver the project is 12 months from
the close of financing which moves the Company into production in
Q1 2019."
David Trucano, Portfolio Manager, BlackRock Global Credit team
commented: "We are pleased to provide funding on behalf of our
clients to restart operations at La Parrilla, one of the most
efficient mines in Europe. We believe the current dynamics of the
tungsten market present a unique opportunity for W and our
clients."
Short Term Loans
In order to provide interim funding, each of, Beronia
Investments Pty Ltd ATF Duke Trust, of which Dr Byron Pirola (a
director of the Company) is both a beneficiary and trustee and
Symmall Pty Limited, of which Mr Michael Masterman (a director of
the Company) is both a beneficiary and trustee, have lent the
Company short term loans of EUR100,000 each. The loans are
unsecured and carry an interest rate of 10% per annum. Each of the
loans will be repaid using the first draw down of US$13.125 million
under the Agreement.
By virtue of their size, the loans constitute related party
transactions under Rule 13 of the AIM Rules for Companies. The
independent director of W, having consulted with the Company's
nominated adviser, considers that the terms of the transactions are
fair and reasonable insofar as the Company's shareholders are
concerned.
Enquiries:
W Resources Plc Grant Thornton UK LLP
Michael Masterman Colin Aaronson / Jen
T: +44 (0) 20 7193 7463 Clarke / Harrison Clarke
www.wresources.co.uk T: +44 (0) 20 7383 5100
Turner Pope Investments (TPI) Gable Communications
Ltd Justine James
Andy Thacker T: +44 (0) 20 7193 7463
T: +44 (0) 203 621 4120 M: +44 (0) 7525 324431
www.turnerpope.com
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
About BlackRock, Inc.
BlackRock, Inc. helps investors build better financial futures.
As a fiduciary to our clients, we provide the investment and
technology solutions they need when planning for their most
important goals. As of December 31, 2017, the firm managed
approximately $6.288 trillion in assets on behalf of investors
worldwide. For additional information on BlackRock, Inc. please
visit www.blackrock.com | Twitter: @blackrock | Blog:
www.blackrockblog.com | LinkedIn:
www.linkedin.com/company/blackrock.
About W
In 2012, W Resources Plc (AIM:WRES) made the successful
transition into a tungsten production exploration and development
company with projects in Spain and Portugal, following two
acquisitions. Projects now include La Parrilla, a tungsten project
in Spain and Régua and Tarouca Tungsten projects and the Portalegre
copper-gold project in Portugal.
The Company's deposits and tungsten mine developments offer a
low cost, high margin resource development opportunity. Tungsten
and Tin prices have increased significantly over the last 12 months
and Tungsten is in the EUs top 5 critical metals list.
The Board is focused to explore further opportunities in the
region with a view to building a mid-tier minor metal producer.
The Company was incorporated in England and Wales in 2004.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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