W Resources Plc (LON: WRES), the tungsten, tin and gold production, exploration and development company with assets in Spain and Portugal, has secured a €3m loan facility with Caja Rural de Extremadura that provides an advance of funding against the €5.3m grant awarded by the Junta de Extremadura Government which is expected to be paid to the Company in Q4 2019.
The €3m loan has an interest rate of 1.75% per annum for a term of 15 months, providing an efficient low-cost source of funds to W Resources. The loan provides a solid reserve of working capital at this pivotal point of development as the Company advances the ramp-up of theT2 phase of the La Parrilla mine to design capacity.
Michael Masterman, Chairman of W Resources said:
“We are pleased to have secured the €3m facility with Caja Rural. The loan is a cost-effective way to enable advanced access to the Junta de Extremadura Government grant as part of the overall funding as we near completion of the T2 development at La Parrilla.”
