W Resources (AIM:WRES) said recoveries of tungsten and tin have continued to improve at its La Parrilla project in Spain following a realignment of the mine plan at the site.
The group recently implemented a revised plan to boost production and move to an operating cash flow positive position, which subject to continued improvement in operations and the strengthening of metal prices, is expected in the first half of 2021.
The group’s realignment focused on the high recovery ore in the main fast track mining area and in the pit in general and that plant availability and performance has increased since.
Despite the tungsten market remaining subdued and the plant running on a limited shift basis during July, La Parrilla continues to export both tungsten and tin to its customers.
Shares in W Resources were trading 7% lower at 0.138p on Wednesday morning.
Meanwhile, the group’s lender, Atlas Capital Markets, has issued a conversion notice for £0.1m of Convertible Bonds, a small portion of the first £500k tranche drawn from this £4m facility through which the firm will issue 75.1m ordinary shares at 0.1330p each per share.
W Resources said the external environment with COVID-19 and global metal prices remains challenging and that cost control and working capital management remains a priority.
Michael Masterman, Chairman of W Resources said, "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."
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