Tungsten West secures UK government investment in minerals project

Tungsten West Plc announced on Tuesday it has agreed with the UK-government-owned National Wealth Fund on the terms of up to £71 million of investments to restart the Hemerdon mine in Devon, England.

The agreement includes an equity investment of £36.0 million via National Wealth Fund subscribing for 100 million new ordinary shares at a price of 36 pence per share. This will result in National Wealth Fund holding a stake of about 7.42% in Tungsten West. Additionally, the agreement comprises a debt financing facility of up to £25 million and a non-committed £10 million accordion facility.

The government will also have a limited period of time to conclude an offtake agreement for up to 50% of the 2025 feasibility study tungsten production from Hemerdon mine.

Tungsten West said the funding will be used to support the restarting of the Hemerdon project, a tungsten and tin mine where production is expected to start within the third quarter of 2026, and to repay the short-term loan facility announced on May 21.

UK Chancellor of the Exchequer John Healey highlighted the government’s intention to support British industries saying: “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,” Healy continued.

Tungsten West shares surged 18% to 51.00 pence on Tuesday morning in London.

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