Funding boost for Drakelands mine

Wolf Minerals to receive further £10 million from bridge loan facility with Resource Capital Funds 

WOLF Minerals Ltd, operators of the Drakelands open-pit tungsten mine, near Plymouth, have received confirmation from Resource Capital Fund VI L.P. (RCF VI) that the release of a further £10 million from a 12-month secured bridge loan facility, up to the maximum £30 million, has been approved.

Wolf Minerals made the drawdown request to continue their focus on improving the performance of the processing plant and optimizing ore feed at the site. The loan facility will support short-term working capital while additional funding requirements are developed for long-term self-sustainable operations at Drakelands.

The increased facility reinforces RCF VI’s continued support of Wolf Minerals’ financial requirements and operations as the company works towards commercial production and design performance at the tungsten mine.

Russell Clark, managing director of Wolf Minerals Ltd, said the company ‘valued the continued support’ from its major shareholder, RCF VI, and its affiliates, as the Drakelands mine progresses towards design performance and realization of its full potential.

‘It is also pleasing to see the tungsten price continuing to improve having increased some 40% in the last 12 months,’ he added.