A Devon-based tungsten and tin mining operation is desperately seeking financial backing after revealing significant concerns about its operational viability. Tungsten West, headquartered in Plymouth, has disclosed that its cash reserves have diminished to a mere £40,000, raising substantial doubts about its future operations.
The company has indicated that existing investors have tentatively agreed to provide £2.8 million in funding by February’s end, contingent upon specific conditions, including the completion of an updated feasibility study and preparations for a major capital raise scheduled for April. The absence of formal commitments from these investors, however, casts a shadow over the funding’s certainty.
The financial position appears increasingly precarious, with pre-tax losses expanding to £13.9 million in the six months leading to September, marking a significant increase from £9.1 million in the previous year. The company’s debt burden has escalated to £24 million, nearly tripling from £9 million, predominantly structured as convertible loan notes.
The Hemerdon mine, situated in south Devon, is believed to house Europe’s largest tungsten deposit, with potential annual production reaching 2,900 tonnes. This strategic resource holds particular significance as tungsten features prominently in aerospace and defence applications, including helicopter blade manufacturing and military ammunition production.
The company’s market capitalisation has experienced a dramatic decline, plummeting to £8 million from its initial £106 million valuation during its 2021 Aim market debut. Trading was temporarily halted in October due to audit-related delays, further compounding the company’s challenges.
Jeff Court, who assumed the role of chief executive in October, maintains an optimistic outlook, citing increased focus on critical minerals supply chains as a potential catalyst for securing necessary funding. Despite targeting production commencement this year, the project has yet to progress beyond preliminary planning stages.
Post Disclaimer
The following content has been published by Stockmark.IT. All information utilised in the creation of this communication has been gathered from publicly available sources that we consider reliable. Nevertheless, we cannot guarantee the accuracy or completeness of this communication.
This communication is intended solely for informational purposes and should not be construed as an offer, recommendation, solicitation, inducement, or invitation by or on behalf of the Company or any affiliates to engage in any investment activities. The opinions and views expressed by the authors are their own and do not necessarily reflect those of the Company, its affiliates, or any other third party.
The services and products mentioned in this communication may not be suitable for all recipients, by continuing to read this website and its content you agree to the terms of this disclaimer.