Wolf Minerals executes necessary agreements to start funding flow

Specialty metals producer Wolf Minerals has now executed all necessary full form standstill and amended and restated agreements relating to its debt facilities with its existing senior lenders and bridge loan facility with Resource Capital Fund VI, it announced on Tuesday, to support its short-term working capital requirements until 28 October.

The ASX and AIM-traded company said it received guarantor consent from the German government's Untied Loan Guarantee Scheme (Ungebundene Finanzkreditdeckung) to enter into and implement the relevant agreements, which - among other things - confirmed the deferral of principal, interest and other amounts that were due in relation to the senior debt at the end of July.

In addition, the firm said it received the initial tranche of £2m from the additional £4m secured priority loan under the amended and restated Bridge Facility, and the initial £0.9m of the £1.7m available from the cash balance previously restricted for use on the noise and vibration management plan.

“The further standstill arrangements provided for by the agreements will commence on satisfaction of the relevant conditions precedent, which Wolf expects to take place within the next few days,” the firm’s board said in its statement.

“Those arrangements include certain waivers of, and amendments to, the senior debt and bridge facility conditions for any non-compliance prior to or during the standstill period.

“The further standstill arrangements terminate on the earlier of 28 October or the occurrence of specific limited events of default.”