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W Resources says La Parrilla project construction estimated to come in “on or below budget”

The miner said capital expenditure for the project including a contingency of €2.7mln was estimated to be on or below the budget of €27.1mln
Tungsten element
Chairman Michael Masterman added that tungsten prices were tracking "well above" the investment decision parameters

W Resources PLC (LON:WRES) said construction at its flagship La Parrilla tungsten mine in Spain is estimated to come in “on or below budget” as works continued at the project.

In a progress update, the AIM-listed miner said capital expenditure (capex) for the project including a contingency of €2.7mln was estimated to be on or below the budget of €27.1mln, with the crusher and jig & mill on schedule for completion in the fourth quarter of 2018 and concentrator completion for the first quarter of 2019.

WATCH: W Resources Plc on site at La Parrilla in Spain as construction advances

The firm also said that all plant civil works had been completed, all major contracts had been placed, and 81.3% of capex had been committed.

Engineering and procurement for the project are also now over 90% complete.

Michael Masterman, Chairman of W Resources, added that tungsten and tin prices, in addition to the dollar to euro exchange rate, was tracking “well above the financial investment decision parameters” and construction was expected to accelerate over the next 6 months.

In early trading, shares in W Resources were up 2.3% at 0.4p.

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