THE BOURSE WHISPERER: Dual-listed (ASX and AIM) specialty mineral exploration and development company Wolf Minerals has received subscriptions for 18.5 million shares to raise $5 million.
The shares have been picked up by two of the company’s major shareholders in Resource Capital Fund V and Traxys Projects LP, which have subscribed for 16.7 million ordinary shares and 1.85 million ordinary shares respectively at a price of 27 cents (17 pence) per share.
In the first tranche Wolf will issue 4.35 million shares under its 15 per cent placement capacity (ASX Listing Rule 7.1) consisting of the Traxys Shares and 2.5 million of the RCF Shares, increasing RCF’s shareholding to 19.9 per cent.
The second tranche consisting 14.2 million RCF Shares will be issued subject to shareholder approval.
“We welcome the continued support of RCF and Traxys in this turbulent market,” Wolf Minerals managing director Humphrey Hale said in the company’s announcement to the Australian Securities Exchange.
“Wolf values the strong working relationship it has with its senior shareholders and looks forward to their ongoing support as we work to bring the Hemerdon project into production as a world class source of tungsten supply.”
Project location. Source: Comapny web site
Wolf Minerals said the subscriptions will provide additional working capital as the company works to finalise financing arrangements over its Hemerdon tungsten and tin project, in Devon, in the south-west of the United Kingdom over the coming months.
The company will put the funds to use to ensure it can maintain its development schedule and cover costs associated with construction of the Hemerdon link road and arranging project debt facilities.
When it was admitted to the AIM market recently Wolf envisaged that funding to develop the Hemerdon project to comprise a mix of debt and equity.
Since that time, the company has agreed to terms with senior lenders for a project finance facility, and with off-take partners for additional debt funding.
These provide a significant proportion of the capital costs Wolf outlined in its Definitive Feasibility Study in May 2011 as well as working capital for the Hemerdon project through to the project being cash flow positive following the anticipated commencement of production in 2014.