Tungsten West plc has arranged an unsecured £4 million bridge loan facility and conditionally agreed the full conversion of the 2023 convertible loan notes, with the same existing investors.
PRODUCTION
The agreement will advance of the “overall construction funding package” for the company’s Hemerdon tin-tungsten mine in Plympton, Devon.
The bridge facility, which accrues 15% interest per annum, can be drawn down in two tranches, subject to conditions including completion of the loan notes conversion.
Lansdowne Partners (UK) Ltd, Drakewood Investments Ltd and Henry Maxey, the three largest noteholders, are providing the bridge facility.
Tungsten West said that of the original £22.3m loan notes, issued in eight tranches, the total amount outstanding as at the final conversion date of 31 December 2025 will be £30.4m including accrued interest.
The company will issue 1,013,563,519 ordinary shares for the full conversion of the notes at three pence per share.
Talks with “certain parties” over the debt and equity elements of the project financing are expected to complete during the first quarter of 2026.
The £4m bridge facility will, among other matters, accelerate acquisition of long lead items for the restart of production at Hemerdon.
The bridge facility, included in the US$93m (£70m) pre-production funding requirement, will be replaced with project financing.
The company said it would issue further details regarding project financing.
“Supply and demand remains tight in the tungsten market and this is reflected in the current market price,” added chief executive officer Jeff Court.
“This further underlines the heightened need to bring our world class tungsten asset at Hemerdon back into production as quickly as possible.
“Hemerdon is perfectly positioned to re-start production in the short term and is well placed to supply western offtakers.
“Finalising the project financing and accelerating the project schedule is our primary focus.
“The agreement on the conversion of the notes is a watershed moment for the company as it frees up our capital structure to conclude project financing and advance the re-start of operations at Hemerdon.”
Tungsten West shareholders will vote on the proposals at a general meeting.