In an update, the mining firm said the management team at the project have delivered a revised plan to boost production and move to an operating cash flow position, which subject to continued improvement in operations and a “modest strengthening” in metal prices is expected in the first half of 2021.
The group added that the realignment focused on high recovery ore in the main fast track mining area and in the pit in general. Plant availability and performance has also increased under the new plan.
Meanwhile, W Resources said one of its lenders, Atlas, has issued a conversion notice for £100,000 of convertible bonds, a small portion of the first £500,000 tranche drawn from the £4mln facility, through which the firm will issue around 75.mln ordinary shares at a conversion price of 0.1330p each.
The group added that global metal prices remained “challenging” amid the presence of coronavirus and that cost control and working capital management “remains a priority”.
“In these unprecedented and volatile times we are pleased to have the facility in place with Atlas. 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”, W Resources chairman Michael Masterman said in a statement.
The company’s shares rose 5.4% to 0.15p in mid-morning trading.