Devon Tungsten Mine Project Secures Major Investment to Restart Production
The company behind a significant mining project in Devon has successfully raised more than £41 million through a substantial share sale. Tungsten West, which is listed on the London Stock Exchange, is focused on restarting operations at the Hemerdon tungsten and tin mine located near Plympton, close to Plymouth.
Details of the Share Sale and Investor Support
On Friday, the company announced the completion of a placing and subscription that generated gross proceeds exceeding £40 million. Specifically, 59,746,113 ordinary shares were placed with new institutional investors and existing shareholders at a price of 18 pence per share, raising £10,754,300. Additionally, a further 162,712,757 new ordinary shares were issued via a subscription with a prominent international investor, securing an additional £29,288,296.
According to Tungsten West, the combined subscription and placing was more than 2.5 times oversubscribed, indicating strong market confidence in the project. The company also confirmed that retail investors are being given the opportunity to subscribe for shares through a separate retail offer, with results to be announced at a later date.
Strategic Importance and Future Plans
Jeffery Court, Chief Executive of Tungsten West, expressed his satisfaction with the market's robust support. He stated, "We are extremely pleased that the market has shown such strong support for the company. These funds are a cornerstone for the re-start of operations at Hemerdon in a time of very buoyant commodity prices." He extended a warm welcome to new shareholders and thanked pre-existing investors for their increased commitment, highlighting their shared belief in the company's vision.
This funding milestone follows a recent announcement by Tungsten West that production at Hemerdon could commence within 12 months, provided the necessary capital was secured. The timing is particularly opportune as global demand for critical minerals, including tungsten, continues to surge amid rising geopolitical tensions. Tungsten is a vital material used extensively in manufacturing sectors such as automotive and defence.
Background on the Hemerdon Mine
The Hemerdon mine is situated approximately seven miles north-east of Plymouth and is recognised as one of the world's largest tungsten resources. Tungsten West acquired the site in 2019 through a receivership process after the previous operator, Wolf Minerals, collapsed. Once fully operational, the company projects that the mine could supply up to 20 per cent of the global primary tungsten production outside of China, positioning it as a key player in the international market.
Looking ahead, Mr Court emphasised the company's immediate focus: "Our focus now is to accelerate our re-commissioning programme and get into production as quickly as possible, whilst concluding the advanced positions we have on the Project debt package." He also expressed personal gratitude to all employees, consultants, and advisers for their hard work, as well as to shareholders for their ongoing support.
In this transaction, Hannam & Partners acted as the bookrunner and placing agent, facilitating the successful completion of the share sale. This development marks a significant step forward for the Devon mining project, potentially revitalising local economic activity and contributing to the UK's strategic mineral supply chain.
