Woulfe Mining has secured project financing from Korea’s largest commercial bank to progress development of its Sangdong tungsten/molybdenum facility. Shinhan Bank has signed a Memorandum of Understanding with Woulfe to provide a US$104 million loan over 12 years.
Woulfe’s chief executive officer Brian Wesson says, “The terms offered by Shinhan are very competitive at less than 6.0% p.a. inclusive of all costs. The loan will complement the $70 million equity put in place through the strategic deal signed earlier this year, which will be adequate to develop the Sangdong project through to production.”
He says the finance plan will also improve the project’s net value which was assessed at US$400 million with an IRR of 46% in the feasibility report announced in April this year.
The success by management in marketing the company during the past year and raising finance is now in its final stages, allowing Woulfe to focus on bringing the mine into production.
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 will begin next month, while exploratory production mining is under way having produced more than 2000 tonnes of ore, stockpiled on surface.
The company has spent the last 22 months building the Sangdong team to reopen the mine, and is on schedule to bring the project into production of tungsten metal next year.