Woulfe Mining will sell 25 million shares in a bid to raise up to $5 million finance to advance its properties in South Korea.
Dundee Securities will manage the sale of 20 million shares in a brokered offering, while a further 5 million units will be sold in a non-brokered private placement. Both offerings are due to close at the end of August and are subject to stock exchange approval.
Woulfe’s president Brian Wesson says proceeds will be used to repay short term debt and as working capital at its Sangdong tungsten-molybdenum mine.
Last month, Woulfe secured project financing from Korea’s largest commercial bank to progress development of Sangdong. Shinhan bank signed a Memorandum of Understanding (MoU) with Woulfe to provide a US$104 million loan over 12 years.
Woulfe is in partnership with IMC to develop the Sangdong mine, which is about 187km southeast of Seoul. It was one of the world’s largest and most renowned tungsten mines before Korea Tungsten closed down operations in 1993 due to falling commodity prices. New mine access development is under way, as is exploratory production mining which has produced more than 2000 tonnes of ore, stockpiled on surface.
The company has spent the last two years building the Sangdong team to reopen the mine, and is on schedule to bring the project into production of tungsten metal next year.