Tungsten West plc has agreed a US$25 million bridging loan facility with an entity controlled by its substantial shareholder Gregory Coffey, to progress the Hemerdon tungsten-tin mine project in Devon.
CAPACITY
The company also plans to “materially increase” production capacity, including “significant” additional capacity in the new build programme, “in response to recent market conditions”.
The binding unsecured short-term loan facility will provide funds up to the first phase restart of fines gravity processing during the third quarter of this year.
Tungsten West said it had completed the final stage of due diligence on the larger debt package of up to US$85m, with finalisation of documents currently underway.
The facility will be utilised in part to repay any funds from today’s announced short-term loan facility.
Work at Hemerdon continues with refurbishment of the fines gravity circuit “well progressed”, ahead of commissioning expected in Q3 2026.
“Fines will be generated using a third-party mobile crushing and wash plant solution, with feedstock sourced from the previous operators’ ore stockpiles,” said the company.
“The fines gravity circuit will initially be run at up to 100 tonnes per hour (fines gravity installed capacity is approximately 200t per hour).
“The company has entered into an agreement with Duo Operations Limited to provide mobile crushing and wash plant services on a variable cost basis.”
Coarse gravity circuit refurbishment is also progressing well, with commissioning expected in Q4 2026.
“The initial flow sheet will consist of pre-concentration using a mobile in line pressure jig system and the previously installed dense media separation system,” added Tungsten West.
“Feedstock will be sourced from exposed ore, with minimal stripping.
“Although initial throughput will be lower, in this configuration, the coarse gravity circuit will be capable of processing approximately 150t per hour.”
PRODUCTION
Full project commissioning is expected during Q1 2027, which allows the ramp up to nameplate capacity of 500t per hour over the course of that year.
Preparatory mining works, using six pieces of Komatsu heavy mobile equipment, has started, and the first fleet of Komatsu primary earth moving equipment is expected to arrive next month at Hemerdon.
Tungsten West has additionally “well progressed” discussions with multiple parties on offtakes.
The company expects to have recruited more than 120 new personnel by the end of June 2026.