Wolf Minerals, a specialty metal exploration and development company announced it has mandated UniCredit Bank AG, ING Bank N.V. and Caterpillar Financial SARL to seek a revised credit approval to provide senior debt finance facilities totaling £75 million ($119 million) to fund the commercial development of the Hemerdon tungsten and tin project in Southwest England.

During the completion of the documentation process of the previous senior debt facility and offer of subordinated debt funding from off-takers, an opportunity to simplify the financing structure was identified. This has resulted in the existing senior debt providers seeking to expand their position from £55 million to £75 million. Wolf therefore proposes to finalize the off-take agreements without the requirement for subordinated debt.

Wolf has ceased to progress the existing credit approved offer of £55 million of senior debt and has mandated the company’s existing banking syndicate to seek credit approval for an expanded and simplified funding package.

Wolf said this simplified funding solution will support the planned construction of the Hemerdon project, based on the definitive feasibility study completed in May 2011.

Provision of the senior debt finance facility is subject to completion of the project finance documentation and the usual credit approvals and conditions precedent customary for a financing of this nature.
The current timetable is for the lenders to obtain a credit approval for the revised funding facility in mid-October 2012.