---
title: "Critical UK Tungsten Mine Faces Uncertain Future as Cash Reserves Plummet to 40000 Pounds"
publisher: "Stockmark.IT"
author: "Stockmark.IT Website"
published: "2025-01-07T11:54:09+00:00"
modified: "2025-01-07T11:54:09+00:00"
date: 2025-01-07
canonical: "https://stockmark.it/critical-uk-tungsten-mine-faces-uncertain-future-as-cash-reserves-plummet-to-40000-pounds/"
category: "Mining"
categories: ["Mining"]
image: "https://i0.wp.com/stockmark.it/wp-content/uploads/1736250764258_yELZtKNA.jpg?fit=1024%2C576&quality=89&ssl=1"
format: "news"
language: "en-GB"
---

# Critical UK Tungsten Mine Faces Uncertain Future as Cash Reserves Plummet to 40000 Pounds

**Published:** January 7, 2025
**Author:** Stockmark.IT Website
**Categories:** Mining
**Featured image:** ![Aerial view of a UK tungsten mine processing plant. The facility sits within a landscape of green fields and hills. from Stockmark.it](https://i0.wp.com/stockmark.it/wp-content/uploads/1736250764258_yELZtKNA.jpg?fit=1024%2C576&quality=89&ssl=1)

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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.

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