Tungsten West plc could be in line for up to US$95 million (£70.3m) after it received a non-binding letter of interest from the Export-Import Bank of the United States for the Hemerdon tungsten-tin mine near Plymouth, Devon.
CONFIDENCE
As the USA’s official export credit agency, EXIM’s decision would be based on the project’s off-take agreements with US buyers.
Under the agency’s new supply chain resilience initiative (SCRI), which helps secure critical minerals for American businesses, EXIM could consider the financing for a “maximum repayment term of 15 years”.
“The contemplated funding package would form a significant part of the debt financing required to bring Hemerdon back into production,” said Tungsten West.
The company noted that the LoI was an indication of funding and not a firm commitment.
Chief executive officer Jeff Court added: “The letter of interest from EXIM underlines Hemerdon’s global critical minerals supply credentials and is reflective of its extensive potential.
“The project is poised to produce approximately 20% of global supply of primary tungsten from outside China, representing a strong opportunity to establish supply chain security in the many sectors that are reliant on tungsten.
“Whilst there are no assurances that this LoI will result in a financing commitment, it is a strong display of confidence in our investment case as we proceed with various funding discussions.”