REG - Tungsten West PLC - Corporate Update

Tungsten WestAnnouncement

16/08/2023 07:00

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RNS Number : 4280J  Tungsten West PLC  16 August 2023

16 August 2023

Tungsten West Plc

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

 

 Corporate 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 fulfilled the conditions precedent to
draw the second tranche of up to £2.975 million of the 2023 Convertible Loan
Notes ("CLNs"), announced on 19 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, as follows:

 

·    an initial tranche of £3.975 million issued following the
satisfaction of the conditions precedent in the Note Purchase Agreement
("Tranche A Notes"). The amount comprised a maximum commitment of up to £2
million from funds managed by Lansdowne and up to £1.975 million from other
note purchasers; and

 

·    an additional tranche ("Tranche B Notes") of £2.975 million
(comprising a maximum commitment of £1 million from funds managed by
Lansdowne and up to £1.975 million from the other note purchasers) following
the satisfaction of certain conditions precedent with the consent of the
majority holders of the CLNs.

 

Lansdowne has now confirmed that Tungsten West has made satisfactory progress
in permitting, funding and governance arrangements and has fulfilled the
necessary conditions precedent to draw the Tranche B Notes. The Company
expects to issue a further £2.975 million of loan notes on or around 17
August 2023.

 

As previously announced on 13 March 2023, the Board has been actively
searching for suitable, industry experienced non-executive directors to
enhance the Board's capabilities and to align the Board with the Company's
strategic requirements. Further to this search the Board intends to appoint
Mr. Adrian Bougourd and Mr. Guy Edwards as non-executive Directors, subject to
satisfactory completion of due diligence checks required for the appointment
of a director of an AIM company. Further details of these proposed
appointments will be announced to the market once this due diligence process
has been completed.

 

Additionally, further to the restructuring exercise and cost reduction
programme announced on 3 April 2023, Tungsten West has initiated a further
evaluation of the financing structure of the Company, whereby spending
priority has been given to activities relating to planning and permitting,
environmental compliance and funding, as these are essential to the continued
progress of the Project.

 

Therefore, in order to prioritise these activities, a proposed cost reduction
programme will need to be implemented, including a further approximate 25%
reduction in staff costs via redundancies, reduced hours and resignations. In
line with this, the Company has initiated a collective consultation process
with staff and expects to announce the results of this exercise in September
2023. In another move to manage liquidity, the Company is in the process of
agreeing deferred payment plans and restructuring supply agreements with a
number of creditors.

 

Neil Gawthorpe, CEO of Tungsten West, commented: "Although the further
evaluation of the financing structure of the business has led to some
difficult decisions for the Board, the cost savings this will generate,
combined with the funds received from the Tranche B Notes, will provide
crucial funding for planning and permitting activities, and enable us to
ensure continued environmental compliance, which are vital steps towards
restarting the Hemerdon mine.

 

"We will continue to work with all stakeholders, including governmental
departments and organisations, and the local community, to ensure all funding
and permitting requirements are in place to recommence the production of
tungsten and tin at Hemerdon as soon as practicable."

 

 

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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