Tungsten West secures £2.8 million in added funding

Published 13/01/2025, 14:28
Tungsten West secures £2.8 million in added funding

LONDON - Tungsten West (LON:TUNT) (LON:TUN), a UK-based mining company, announced today that it has conditionally raised £2.8 million through the issuance of an additional tranche to its existing convertible loan notes. The new tranche, labeled Tranche G, follows the same terms as previous tranches and is aimed at funding the company's efforts to restart production at the Hemerdon tungsten and tin mine in Devon, UK.

Tranche G is divided into two parts, with £1.9 million expected to be received by the company imminently and the remaining £0.9 million pending certain conditions. These conditions largely pertain to the project's economics and the preparation for a significant capital raise anticipated to begin in early Q2 2025. This capital raise is expected to contribute to an updated feasibility study.

The maturity date for the convertible loan notes has been extended to December 31, 2025. The funds from Tranche G will primarily be used for the completion of essential studies to establish a robust economic model for the project, with the goal of finalizing these studies by the end of Q1 2025. The company expects that subsequent financing in the second half of 2025 will enable the recommencement of tungsten and tin production by the second half of 2026.

The press release from Tungsten West also highlighted that this announcement contains inside information, which is regulated under Article 7 of Regulation 596/2014, as amended by the Market Abuse (Amendment) (EU Exit) Regulations 2019.

This update comes as the mining industry continues to see investment in the development and expansion of critical mineral resources. Tungsten West's efforts to bring the Hemerdon mine back into production is a part of this broader industry trend.

The information for this report is based on a press release statement from Tungsten West.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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