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W Resources gains major offtake deals for tungsten project
W Resources announced on Friday that it has secured two long-term offtake agreements for tungsten from its La Parilla mine in Spain.
The company will supply Wolfram Bergbau und Hütten AG (WBH) and an unnamed second company which is a leading supplier to the USA tungsten markets with 66% tungsten concentrate on competitive pricing terms.
WBH is Europe's largest tungsten processing company.
Ulrika Wedburg, president of WBH, said: "We are pleased to see the development of another tungsten deposit in Europe and are looking forward to adding the production of the La Parrilla Mine to our supply portfolio."
The agreement will cover the initial T2 development of the mine and account for approximately 80% of the planned production tonnage from this phase.
Michael Masterman, chairman of W Resources said: "We are delighted to have executed two long term offtake agreements, where tungsten product will be delivered directly to the customers' state of the art, large capacity scheelite tungsten processing plants. The agreements provide W with assurance of a solid revenue stream once production commences in early 2019 as we now focus on the implementation of the mine development plan following the recent US$35 million funding from BlackRock."
The loan from BlackRock was secured last week and has been used to repay short term loans from Symmall Pty and Beronia Investments, as well as to fund the developments at La Parrilla.
W Resources plans to deliver the project within 12 months from the close of financing, with production to start in the first quarter of 2019.
As of 1001 GMT, W Resources' shares were up 5.70% at 0.60p.