28 Oct 2016

Clayton Utz advises Wolf Minerals on financing agreements for Drakelands

Perth, 27 October 2016: Clayton Utz has advised Perth-based ASX and AIM listed tungsten miner Wolf Minerals Limited (Wolf or the Company) on its entry into a series of agreements to support the Company’s financial strength and operations as it works towards commercial production and design performance at the Drakelands open pit mine (Drakelands). 

Perth Corporate Advisory/M&A partner Matthew Johnson led the Clayton Utz team, together with Banking and Finance partner Rohan Mishra, senior associate Annie Atkins and special counsel Kate Casellas

To continue its focus on improving the performance of the processing plant and optimising ore feed at Drakelands, Wolf has executed binding agreements with:

  • its existing senior lenders for a standstill and restructure of the senior debt currently outstanding; and
  • Resource Capital Fund VI L.P., to provide a £20 million, twelve-month secured bridge loan facility (Bridge Facility) with the potential for this to be increased to £30 million.

The Bridge Facility will mandatorily switch to a three-year subordinated convertible loan, if certain conditions precedent are satisfied, or a three-year subordinated loan if those conditions are not satisfied.  The Company will seek shareholder approval at an Extraordinary General Meeting to enable the issue of ordinary shares in accordance with the convertible loan terms under the Bridge Facility.

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Clayton Utz communications are intended to provide commentary and general information. They should not be relied upon as legal advice. Formal legal advice should be sought in particular transactions or on matters of interest arising from this communication. Persons listed may not be admitted in all States and Territories.