Wolf Minerals Limited announced that it has received an updated and increased credit approval from UniCredit Bank AG, ING Bank NV and Caterpillar Financial SARL for UK£75 million (A$115 million) in senior debt finance facilities to fund the commercial development of its Hemerdon tungsten and tin project in Devon, in Southwest England. Wolf is also planning to raise £50million in equity financing, which managing director Humphrey Hale told the West Australian newspaper is targeted by the end of the year.
The funding will support the planned construction of the project, based on the Definitive Feasibility Study completed in May 2011. The study confirmed the economic viability of the open pit mine project and estimated a post-tax, ungeared net present value of UK£74 million (A$114 million). The DFS was based on 9.25 year mine life (limited only by the existing planning permission) with a throughput rate of 3Mtpy of ore to produce 3,500tpy of a wolframite tungsten concentrate with a grade of 65% WO3 and a further 450tpy of a 40% tin concentrate.
