Mining company Wolf Minerals said it has secured funding to begin production on its Hemerdon tungsten and tin project in the UK.
The group - which was formed in Sydney, Australia - received AU$212m to start development and construction of the mine in Devon.
"It goes without saying that, against the backdrop of challenging conditions, the achievement of this funding package is a major milestone for the company and one that we are delighted to have achieved," the firm said in a statement.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Funding was derived from a AU$20.3m placement of shares, US$82m from Resource Capital Fund and a credit approval for £75m senior debt backing from UniCredit Bank AG, ING Bank N.V. and Caterpillar Financial SARL.
Key environmental approvals have also been granted to allow works to begin on the project.
The announcement comes after Wolf Minerals moved into a new UK head office at the Tamar Science Park in Plymouth, placing it in close proximity to the project.
Wolf anticipated the project will generate 230 direct jobs and more indirect jobs when in full production, injecting millions of pounds into the local economy.
Shares fell 1.80% to 20.50p at 10:11 Friday.
RD
-
Why CEOs deserve a pay riseOpinion The CEOs of big companies often come under fire for being grossly overpaid. But the truth, as per some economists, is the opposite. Do they merit a pay rise?
-
Europe prepares to stand alone as Trump turns on UkraineSupport for old military alliances is wavering in the US under Donald Trump. Europe’s leaders are rushing to fill the void. Simon Wilson reports
