Tungsten West plc has conditionally raised gross proceeds of approximately £44.37 million to restart production at its Hemerdon tungsten-tin mine in Devon.
TVRs
The fundraise, by way of subscriptions, a placing and a conditional retail offer, was for an aggregate 239,125,536 new ordinary shares.
The main direct subscription for 162,712,757 new ordinary shares raised £29,288,296.
The company has placed 59,746,113 ordinary shares with new institutional investors and existing shareholders in relation to the placing, which raised £10,754,300.
Combined with other direct subscriptions and the placing, gross proceeds reached £41,369,718.
Tungsten West said that the subscription and placing were more than 2.5 times oversubscribed, leading the company to increase the fundraise by £1.1m.
The placing and subscription shares represent, in aggregate, approximately 17.6% of the company’s issued share capital, including B Shares, before the fundraise.
Chief executive officer Jeffery Court added that the funds were a “cornerstone” for the re-start of operations at Hemerdon.
The company will admit the issued shares to trading in two tranches.
The first tranche of subscription shares, totalling 40,253,887, and the first tranche placing shares, totalling, 59,746,113, will be admitted to trading.
The second tranche of 129,831,768 ordinary subscription shares will be issued on shareholders’ approval at a general meeting.
Tungsten West said its retail offer was “substantially” oversubscribed and conditionally raised approximately £3m, through the issue of 16,666,666 new ordinary shares.
Following admission of the 239,125,536 new ordinary shares, the company’s issued ordinary share capital is expected to comprise 1,014,345,767 ordinary shares, each with one voting right.
Tungsten West holds no ordinary shares in treasury.