The London-listed firm which desires to extract one of many world’s largest tungsten deposits from a website in Devon is in talks with buyers to lift tens of thousands and thousands of kilos from a share sale.
Sky Information has learnt that Tungsten West is near finalising the phrases of an equity-raise aimed toward offering extra financing for the tin and tungsten venture at Hemerdon in Devon.
Trade sources steered the capital-raising, which is more likely to safe between £40m and £50m of latest funding, was more likely to be confirmed this week.
Cash newest: The 32 NatWest branches due to close
The fundraising comes as international demand for important minerals soars amid rising geopolitical tensions.
Tungsten is a key mineral utilized by producers in a wide range of industries, most notably in defence, power and automotive.
China is at the moment answerable for producing about 80% of the world’s provide of tungsten, however export controls have raised profound issues in Western economies, significantly the US.
Solely this week it emerged that the US deliberate to speculate $12bn in stockpiling important minerals corresponding to uncommon earths, copper and lithium.
Tungsten West believes that over time it could produce roughly 1 / 4 of the world’s non-Chinese language tungsten.
The mine was final operational in 2018 beneath a distinct proprietor
The corporate floated on London’s junior AIM market in 2021 with the intention of restarting tin and tungsten manufacturing on the Devon website.
In an replace to the inventory market earlier this week, the corporate stated it was making good progress on elevating debt finance for the venture.
“The structural shift within the tungsten market that we have now seen for the reason that finish of 2024 displays the ever rising want to offer important mineral diversification and provide chain resilience to Western economies,” Jeff Court docket, the chief govt of Tungsten West, stated within the assertion.
“Within the comparatively brief time since releasing the Up to date Feasibility Research, tungsten costs have elevated over 200% and tin costs over 70%.
“As the corporate is totally leveraged to market costs, the Undertaking’s economics have vastly improved, underlining the significance of advancing the Undertaking quickly.”
Learn extra:
How Trump tariffs are harming UK metal industry
Shares in Tungsten West closed on Wednesday at 29.9p, an increase of near 13%.
It has a market worth of simply over £205m.
The value at which the brand new shares can be issued was unclear.
Tungsten West declined to touch upon Wednesday night.
