Tungsten West plc has secured a proposed investment of up to £71 million of public money to restart the Hemerdon tungsten-tin mine in Devon.
‘World class, low cost and long-life resource in the UK’
The company said that the funds from the Government-owned National Wealth Fund completed the funding package for the project.
Of the total proposed sum, £36m will be via a subscription of 100m new ordinary Tungsten shares of £0.01 each, at 36 pence per share. The NWF will subsequently own around 7.42% of the voting rights of the company’s enlarged issued ordinary share capital.
Up to £25m will represent debt and a non-committed £10m accordion facility, while the Government will also have the option for a limited time to secure an off-take agreement for up to 50% of Hemerdon’s production as projected in the 2025 feasibility study.
The NWF will additionally nominate a board observer before the appointment to the company’s board of its nominated non-executive director, yet to be announced.
Part of the funding will also repay the US$25m short-term loan facility from May 2026, agreed with an entity controlled by Tungsten West’s substantial shareholder Gregory Coffey.
Following admission, the company’s issued ordinary share capital will comprise 1,347,672,923 ordinary shares, each with one vote, and 257,075,833 B shares. No ordinary shares are held in treasury.
“Hemerdon is a world class, low cost and long-life tungsten and tin resource in the UK,” said chief executive officer Jeff Court.
“It is extremely important to us that we prioritise UK requirements for this critical metal to support domestic demand, including strategic initiatives across defence and next generation energy.”
Tungsten West is currently completing tests ahead of restarting production during the third quarter of 2026, and is also well advanced in “significant” off-take negotiations with a “major” tungsten refiner.
Chancellor of the Exchequer John Healey added: “We are living in a more dangerous world, which is why backing British industry is more important than ever before. That is what this deal does.
“We are tapping into one of the largest deposits of tungsten in the world, right here in the UK.
“This investment will supply vital minerals to British defence, energy and aerospace businesses – and keep good, well-paid jobs in the UK.
“All part of this Government’s commitment to drive growth in every postcode, back British business and keep our country safe.”