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