REG - Tungsten West PLC - Convertible Loan Note Update

Tungsten WestAnnouncement

18/12/2023 07:00

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RNS Number : 0656X  Tungsten West PLC  18 December 2023

 

18 December 2023

 

Tungsten West Plc

("Tungsten West", the "Company" or the "Group")

 

Convertible Loan Note Update

 

Tungsten West (LON:TUN), the mining company focused on restarting production
at the Hemerdon tungsten and tin mine ("Hemerdon" or the "Project") in Devon,
UK, is pleased to announce that it has raised £1.8 million by way of Tranche
C of the 2023 Convertible Loan Notes ("CLNs"). The terms and conditions of the
Tranche C CLNs are substantially the same as the Tranche A and B CLNs
announced in May 2023.

 

In May 2023, the Company confirmed that it had raised a total of up to £6.95
million (before expenses) by way of CLNs, in two tranches.

 

The proceeds of Tranche C are to support the Company as it continues to
progress its activities in permitting, updating its Feasibility Study, and
associated financing. It is expected that the Company will require further
funding via an additional Tranche D under the existing CLNs, or other
instrument, in Q1 2024 to complete the Feasibility Study and allow the Company
to complete its main financing round. In addition, the Company is exploring
the sale of certain assets. The CLN holders have released their security over
these assets to allow the Company to do so.

 

The Company continues to be actively engaged with the Environment Agency
("EA") in respect of its Mineral Processing Facility ("MPF") permit. In
particular, the EA and the Company have been working to significantly reduce
low frequency noise ("LFN") from the MPF. The Company believes that it has
provided solutions which will mitigate LFN and now awaits a decision on a
draft permit in the New Year.

 

On receipt of the MPF permit, the Company will be able to complete an updated
Feasibility Study leading to a financing round in H2 2024 which will enable
the Company to recommence production of tungsten and tin. Although subject to
an updated Feasibility Study and subsequent financing, the Company envisages
that mining operations should restart in H2 2025.

 

On 6 December 2023, Devon County Council approved the Company's Section 73
application to vary the tonnage cap associated with the existing permission
for 50 truck movements per day from the site, in order to facilitate the sales
of secondary aggregates. Further to this the Company received positive news
relating to test work carried out on its secondary aggregate products, showing
them to be superior, in several applications, to other materials available
locally.

 

The Company continues to optimise spending to focus on planning and
permitting, environmental compliance, and funding, as these are essential to
the continued progress of the Project.

 

Neil Gawthorpe, CEO of Tungsten West, commented: "The Company has continued
to progress towards securing the Mineral Processing Facility permit over the
past few months whilst furthering its cost control measures, with focus on
planning, permitting, capital raising, and ensuring compliance.

 

"On planning, I am pleased to share that Devon County Council has now approved
the Section 73 application for increased aggregate volume movements. This
coupled with the positive results on the aggregates test work, lay the
foundations of a robust aggregates opportunity alongside our core tungsten and
tin businesses.

 

"We look forward to updating the Feasibility Study with permits in hand so
that we can secure the future of the Hemerdon Mine."

 

 

This announcement contains inside information for the purposes of Article 7 of
Regulation 596/2014 as amended by the Market Abuse (Amendment) (EU Exit)
Regulations 2019.

 

 

Ends

 

For further information, please contact:

 

Enquiries

 Tungsten West                               Strand Hanson

 Neil Gawthorpe                              (Nominated Adviser and Financial Adviser)

 Tel: +44 (0) 1752 278500                    James Spinney / James Dance / Abigail Wennington

                                             Tel: +44 (0) 207 409 3494
 BlytheRay                                   VSA Capital Limited

 (Financial PR)                              (Financial Adviser and Joint Broker)

 Tim Blythe / Megan Ray                      Andrew Raca / Andrew Monk

 Tel: +44 (0) 20 7138 3204                   Tel: +44 (0) 20 3005 5000

 Email:  tungstenwest@blytheray.com

 Hannam & Partners

 (Joint Broker)

 Andrew Chubb / Matt Hasson / Jay Ashfield

 Tel: +44 (0) 20 7907 8500

 

Follow us on twitter @TungstenWest

 

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