Following on from reports in early October regarding an 18 per cent pre-tax loss for the Anglo-Australian tungsten producer Wolf Minerals in the 2018 financial year, the company has released a report detailing a £10 million ($17.1 million) cash boost for its flagship Drakelands mine in Devon, England.
The short term working capital injection will see the mine’s bridge facility budget increased from £45 million ($76.9 million) to £55 million ($94 million). The bridge facility encompasses plans for an operating turnaround that includes performance improvements across the refinery’s first phase delivery, gravity circuits and various maintenance and work flow improvements.
The $17.1 million will be funded via an agreement with Resource Capital Fund VI (RCF VI), a $1.02 billion committed capital fund of mining equity power player Resource Capital Funds.
Interim managing director of Wolf Minerals, Richard Lucas, had a positive outlook for improvements in 2018.
“The operating turnaround plan is delivering improved processing plant performance and is also building knowledge and experience across the business. When combined with improving tungsten market conditions'” he explained.
“The Company acknowledges RCF VI’s continued support, which is testament to their confidence in Drakelands and the future success of Wolf.”