Wolf Minerals announced Friday it completed a placement to raise AU20.3m dollars as part of a funding package for the Hemerdon tungsten and tin project in Devon, UK.
The AIM-listed metals company said the funds would be used to provide working capital for the Hemerdon project and repay the existing US$6m loan from mining-focused private equity fund Resource Capital Fund (RCF).
Resource Capital Fund has provided an US$82m funding package for the project.
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"The placement is a key milestone for Wolf, as it provides the funding for the company to commence the construction of the Hemerdon project," the company said in the statement.
It will assist in the introduction of a new strategic investor, TTI (NZ) Limited, in aiding the development of the Hemerdon project. The private New Zealand-based company has subscribed for 39,410,000 shares for a 19.9% interest in Wolf, making it entitled to nominate a director to join the board.
The placement satisfies a key condition of the US$75m Bridge Finance Facility and US$7m royalty provided by RCF.
Managing Director of Wolf Minerals Humphrey Hale said: "We are delighted to complete this placement, which sees the company funded to commence the development of the Hemerdon project and to welcome TTI (NZ) Limited to the register to assist us in taking the project into production. Wolf places great value in the good working relationship it has with its senior shareholders as we work to bring the Hemerdon project into production as a world class source of tungsten supply."
Shares were down 4% to 18.00p at 08:58 Friday.
RD
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