Wolf receives credit approval for Hemerdon project

 THE BOURSE WHISPERER: Specialty metal exploration and development company Wolf Minerals has received £55 million (AU$80.1 million) project finance for the company’s Hemerdon tungsten and tin project located in Devon in southwest England.

The support has come from three globally recognised leaders in mining project finance: UniCredit Bank AG, ING Bank N.V. and Caterpillar Finance.

Wolf said the funding will support the planned construction of the project, based on the Definitive Feasibility Study it completed in May 2011.

The study confirmed the robust economic viability of the project and estimated a post-tax, ungeared net present value of £74 million.

The company said it has commenced negotiations with potential off take partners to provide subordinated debt.

This along with the senior debt funding, will enable Wolf to minimise the equity component of the funding package required to put the Hemerdon project into production.

“This represents a major milestone in the company’s funding plans for the Hemerdon project, and is the first of several significant announcements that Wolf expects to make over the coming months as Hemerdon moves into the development stage,” Wolf Minerals managing director Humphrey Hale said in the company’s announcement to the Australian Securities Exchange.

“Having the support of three such high calibre mining finance providers is a further recognition of the project’s potential to become a major specialty minerals mining operation.”