JOHANNESBURG (miningweekly.com) – Aim-listed W Resources has submitted a grant application to the Junta de Extremadura government for funding for its La Parrilla tungsten and tin mine expansion project in Spain.
If approved, the regional government could fund up to 30% of the €19.5-million plant and facilities package for the La Parrilla fast-track mine development, which includes the crusher, jig/mill plant and the concentrator.
Securing a grant from the regional government would strengthen the La Parrilla mine development, W Resources Spanish country manager Fernando de la Fuente said in a statement on Wednesday.
The grant would provide W Resources funds during the critical commissioning period and would enable the company to potentially repay project debt early.
The company is aiming to raise $24-million in debt for the $27-million expansion of the mine, which once fully developed, will be the largest tungsten operation in Europe.
The T2 expansion project will increase the mine rate to two-million tonnes a year, lifting tungsten concentrate production to 2 500 t/y and tin concentrate production to 500 t/y.
The company is also negotiating vendor finance in respect of the key capital components of the T2, and will be looking to secure an additional $3-million in equity or customer finance to complete the funding of the T2 capital expenditure.