Tungsten West plc said it was progressing further debt funding as it continues preparations to restart production at its Hemerdon tungsten-tin mine, north of Plymouth in Devon.
PRODUCTION
Talks with “a number of potential lenders” have advanced to term sheet stage, which are additional to August 2025 expression of interest from the US EXIM bank.
Work at the site also continues with advances made for long-lead orders for key equipment and detailed engineering work.
Tungsten West has additionally started bringing in key project resources to begin the refurbishment and start-up process at the site, while also progressing the pre-conditions required to restart operations.
“The company’s efforts have been bolstered by buoyant tungsten and tin markets, which have further brought into focus Tungsten West’s ability to bring online a globally significant, fully permitted, shovel ready tungsten and tin resource, with high production levels forecasted for both critical minerals,” added the company.
“Tungsten West is well positioned to capitalise on a relatively low capital cost and a short lead time to commercial production of less than 12 months from the commencement of construction.
“Commissioning activities and preliminary concentrate generation are targeted to begin within nine months of concluding project financing.”
The company has progressed “multiple” off-take term sheets and letters of intent, and held “advanced-stage” negotiations on agreements for more than 300% of its peak production levels for tungsten concentrate.
Chief executive officer Jeff Court noted that since the Hemerdon’s 2025 prefeasiblity study, “tungsten prices have increased by over 200% and tin prices over 70%”.
“As the company is fully leveraged to market prices, the project’s economics have vastly improved, underlining the importance of advancing the project rapidly.”
The project had a previously forecast net present value of 7.5%, which Tungsten West said had increased from US$190 million to US$1.7 billion.
Estimates for near term earnings before interest, taxes, depreciation and amortisation have risen “over fourfold”.