Tungsten West float on AIM
October 2021
Tungsten West is the 100 per cent owner and operator of the historical Hemerdon tungsten and tin mine located near Plymouth in southern Devon, England. Hemerdon represents the world’s third largest tungsten mineral resource, with a JORC (2012) compliant Mineral Resource Estimate of approximately 325Mt at 0.12 per cent. WO3. The Company acquired the Hemerdon Mine in 2019 out of a receivership process for £5.4 million.
The Company is raising funds on Admission to, inter alia, complete a planned capital expenditure programme and recommence production at the Hemerdon Mine. The planned works include several process plant upgrades, which are expected to significantly improve the efficiency of the plant, completion of certain improvement works previously initiated by the former operator and the full refurbishment of the existing plant structure. Tungsten West’s business plan also includes selling the significant volumes of aggregates that are produced as a by-product from the primary mining operations at Hemerdon, which was historically treated as a waste product from operations.
Tungsten West has conditionally secured a project finance facility from Orion Resource Partners to provide the balance of the funding required to finance the capital expenditure and working capital required to recommence mining operations at the Hemerdon Mine.
The Group has also conditionally entered into offtake arrangements with Wolfram Bergbau and Hütten AG and Global Tungsten & Powders Corp for the sale of tungsten and with Afrimet Resources AG for the sale of tin.
Admission to Trading on AIM
On 21st October 2021, admission and dealings on AIM commenced by way of a Placing of 64,419,972 New Ordinary Shares at an Issue Price of £0.60 each and Subscription of 580,028 New Ordinary Shares at an Issue Price of £0.60 each.
The Perivan shareholder communications team were delighted to work with Strand Hanson who were appointed Financial and Nominated Adviser to Tungsten West, on the successful publication of the 377-page admission document.
Perivan specialise in the production and publication of financial documents relating to shareholder and investor communications for quoted companies, private companies and open and closed-ended funds.
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