W Resources PLC - Atlas Facility and La Parrilla Update
("W" or the "Company")
Atlas Facility and La Parrilla Update
· Atlas has converted a small part of its loan to equity under the terms of the agreement.
· The La Parrilla management team has implemented a revised and more comprehensive plan to boost production and move to an operating cash flow positive position, which subject to continued improvement in operations and some modest strengthening of metal prices is expected in the first half of 2021.
· Recoveries of tungsten and tin have continued to improve at La Parrilla following a realignment of the mine plan around the high recovery ore in the main fast track mining area and in the pit in general. Under the new management, plant availability and performance has increased.
· The external environment with COVID-19 and global metal prices remains challenging and cost control and working capital management remains a priority.
Atlas Capital Markets Facility
Atlas has issued a Conversion Notice for
Application has been made for the admission of the Ordinary Shares. Following admission of the new Ordinary Shares, which is expected on or around
Over the last three months an extensive programme of metallurgical and geological work has been underway to refine a plan to substantially increase the production of tungsten and tin from the La Parrilla mine. An updated plan has been agreed and commenced, with the objective of increasing production and moving to a cash flow positive position in the first half of 2021 subject to metal prices.
A key focus, as reported in the Q2 2020 report, has been to increase tungsten recoveries which have lagged behind the solid performance with tin recoveries and production. In addition to implementing an improved maintenance programme to fundamentally increase plant operation and availability, the key focus has been one of realigning the mine plan around the high recovery ore in the main fast track mining area and in the pit in general. Ore mined at the southern edges of the mining area exhibited lower recoveries due to mineralogical alteration and low-grade vs recovery properties. Ore feed from the core areas of the mine has demonstrated much stronger recoveries and henceforth will be the focus of mining activities. Recovery is increasing with the deeper benches as the near surface oxidised material has been exhausted and geo-metallurgical grade control improved.
The programme has commenced with the objective of increasing production and moving to a cash flow positive position in H1 2021.
COVID-19 and Tungsten and Tin Prices
The tungsten market remains subdued with the European APT price sitting at
COVID-19 cases have increased in
"At La Parrilla, tungsten recoveries have started to improve with mining moving to the deeper benches and with the focus on the core areas of the mine. With the implementation of the programme underway and with patience we expect to be able to move to higher production rates."
The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
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