W Resources draws down £500,000 from Atlas convertible bond facility

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W Resources PLC (LON:WRES) said it has drawn down a further £500,000 tranche from the £4mln convertible bond facility it has with Atlas Capital Markets.

This is the second drawdown made from the facility which was secured on March 30, 2020.

This convertible bond tranche has a 5% coupon and 3-year term.

As part of the agreement, Atlas can convert the bond to W Resources shares by issuing a conversion notice with the price set at 95% of the selected three-day volume weighted average price in the 15 days leading up to the issue of a conversion notice by Atlas.

“These funds will be used to advance the Régua development and provide additional working capital for the company,” said W Resources chairman Michael Masterman in a statement.

“It is important that the company is able to proceed with mining activities at Régua once Covid-19 restrictions are eased and take the opportunity to produce an 8-12% tungsten trioxide concentrate which will then be trucked to the La Parrilla processing plant for upgrade to 60% WO3 concentrate and purification.”

The Atlas convertible bond facility is unsecured and subordinated to the BlackRock Financial Management loan facility, with BlackRock consent required for any repayment.

W Resources has received a conversion notice from Atlas for £100,000 of convertible bonds, the third tranche in respect of the first £500,000 from the facility. The company will accordingly issue just over 96.5mln new shares at a conversion price of 0.1036p.

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