[Ferro-Alloys.com] Australia’s Wolf Minerals (ASX:WLF,LSE:WLFE) made headlines on Friday with the finalization of AU$192 million in debt financing for its UK-based tungsten project, Hemerdon.

 

Wolf has received approximately AU$113 million project financing from UniCredit Bank, London Branch, ING Bank and Caterpillar Financial. The structure for the senior debt financing is being supported by a guarantee provided by the German government’s United Loan Guarantee Scheme.

 

Wolf Minerals has also entered into a binding offtake agreement with Wolfram Bergbau und Hütten and Global Tungsten & Powders, according to the company’s press release. With the agreement, the offtakers will provide a commercial guarantee for part of the senior-term loan.

 

As per the agreement, Wolf is to supply 80 percent of its expected output at a grading of 65-percent tungsten trioxide concentrate at a discount price to the APT price for a period of five years. Hemerdon is expected to produce an average of 345,000 metric tonne units (mtu) of tungsten trioxide per year. All concentrates will be priced according to Metal Bulletin’s European APT prices.

 

In his statement, Wolf’s CEO, Humphrey Hale, said he is pleased with the agreement, commenting, “Wolfram Bergbau und Hütten and Global Tungsten and Powders, which will help bring Hemerdon in to production as the world’s next major tungsten mining operation.”