Another £50m investment brings mine reopening a step nearer
THE project to reopen the Hemerdon mine has moved a step closer after the company behind the plans received a £50.8million investment which it will use to compulsorily buy houses at the site.
It means Wolf Minerals is now well on the way towards having the cash needed to start constructing the £130million tungsten and tin mine. The firm has received the cash from a binding agreement with Resource Capital Fund VLP (RCF), a mining-focused, US-headquartered private equity firm, which backs mines in 39 countries and is Wolf Minerals' largest shareholder. But the funding package is dependent on Wolf Minerals raising an additional £13million.
The firm says it is in advanced negotiations with investors to find this money.
The RCF bridge finance deal, which also gives that firm a two per cent royalty on mineral production at Hemerdon, comes after Wolf Minerals received credit approval for £75million in secured loans.
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The announcement on funding, made to the Australian Stock Exchange, together with the £75million credit approval, means Wolf Minerals now has the majority of its finance in place, it says.
Part of the RCF funding package will be used by the firm to buy 15 houses within the mine site. These all have people living in them but the compulsory purchase was a condition of the planning permission for Hemerdon, granted by Devon County Council back in 1986.
The funding deal also allows the company to press ahead with the design engineering and procurement necessary to build the mine and bring it into production.
Humphrey Hale, Wolf Minerals' managing director, said: "We are delighted to secure this funding package to further progress the Hemerdon project. Our goal is to develop the project into a globally significant new source of tungsten supply."