A mining firm which is looking to revive production of the rare metal tungsten and tin in Devon has raised £7.1m to support the project.
Tungsten West is redeveloping the Hemerdon mine site near Plymouth, estimated to be the second-largest global reserve of tungsten. The metal is used in the production of light bulb filaments and cutting tools.
The AIM-listed company launched an interim funding round in April and a review of operating costs, capital expenditure, and sale of surplus assets, “multiplying” construction energy, fuel and construction costs, and having had to pause its plans for the mine last year.
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The firm had said it had been hoping to secure between £5m and £6.95m through a convertible loan note, and a further £2m via an open offer to existing shareholders.
Chief executive Neil Gawthorpe said: “This marks the culmination of our interim fundraise, which will provide capital to meet our near-term contractual liabilities and annual expenditure, as well as financing planning and permitting activities. We are now focussed on securing the Mineral Processing Facility permit, which will include imminent low frequency noise trials, as we progress Hemerdon towards production."
Tungsten West previously said it was targeting delivery of the scheme for eight to nine months after full project funding had been agreed. The company recently announced a partial restart of production at Hemerdon on the mine’s legacy tungsten and tin ore. The business said a little more than 50 tonnes of ore had been processed, generating more than £400,000 in revenue.
Bosses added that as part of its cost-cutting strategy, almost half of its workforce of around 60 staff were expected to leave the business via redundancy and resignations.
Tungsten West bought the Hemerdon mine out of receivership for £2.8m in 2019 when former owner Wolf Minerals went into liquidation.
Last August, Tungsten West reported widened losses of £13m - up from a loss of £8m the previous financial year. The company reported a rise in revenue but administrative expenses increased by more than £4m to £7.9m.
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