REG - Tungsten West PLC - Directorate and Management Changes

Tungsten WestAnnouncement

13/03/2023 07:45

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RNS Number : 7229S  Tungsten West PLC  13 March 2023

13 March 2023

Tungsten West Plc

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

Directorate and Management Changes

Strategic Review and Project Update

 

Tungsten West plc (LON:TUN), the mining company focussed on restarting
production at the Hemerdon tungsten and tin mine in Devon, UK ("Hemerdon" or
the "Project"), is pleased to announce the following updates.

 

Directorate and management changes

Neil Gawthorpe has been appointed Chief Executive Officer with immediate
effect. It is the Directors' intention for Neil to join the Board imminently.

 

Neil joins the senior executive team at a crucial time as the Company prepares
to re-launch operations at Hemerdon, positioning Tungsten West as the Western
World's largest tungsten producer. Neil's initial focus will be to conduct a
review of the available funding options of the business to ensure the delivery
of the Project as outlined in the previously announced feasibility study.

 

Neil holds a Bachelor of Engineering (Hons) in Mineral Engineering from the
University of Leeds and has enjoyed a successful career in the mining
industry, spanning almost 30 years, working in various roles, both
operationally and as a consultant across multiple jurisdictions. Most recently
Neil held the role of Senior Vice President ("SVP") Business Development at
Allied Gold, where he was responsible for the due diligence on potential
mergers and acquisitions, as well as leading transitional management and
integration at newly acquired assets. Neil was heavily involved in the
integration of the company's flagship Sadiola operation in Mali, following its
purchase from Anglogold Ashanti/Iamgold in late-2020. He played a key role in
embedding the new management team and mining contractor, culminating in an
on-time and budget restart of mining. He also provided similar support during
the integration of the company's multiple operations in Cote D'Ivoire.

 

Neil also spent nine years as part of the executive team at Sierra Rutile
Limited, taking a struggling operation and transforming it into becoming the
world's largest rutile producer. After completion of several major expansion
projects, the asset was sold in December 2016 for more than US$400 million.

 

Additionally, Francis Johnstone and Grace Stevens have stepped down as
Non-Executive Directors with immediate effect. Martin Wood, Senior Independent
Non-Executive Director will lead the Audit and Risk Committee effective
immediately.

 

The Board is well advanced in the process of identifying additional suitable
industry experienced non-executive directors to enhance the Board's
capabilities going forward and align the Board with the Company's strategic
requirements as it moves to fund Hemerdon into production.

 

Project Update

 

Construction

 

Early stage works on the Hemerdon restart project commenced in January 2023
and are continuing safely and as planned. This includes bulk earthworks and
civil engineering, which are necessary activities to ensure that the Project
remains on track for delivery eight to nine months from full project funding
being agreed. Additional to this enabling work, the Company has also received
deliveries of steel rebar and components for the conveyor systems, and, as
previously advised, has procured all long-lead equipment.  Accordingly, at 31
December 2022 £14m of the Project capital expenditure has been spent at
Hemerdon since the Company's IPO significantly preparing the Project for the
restart.

 

 

Permitting

 

The Company has now received four of the five permits required for the Project
restart. These are Abstraction Licences for the Pit, Loughter Mill and Tory
Pond, as well as the Mine Waste Facility Permit. The Company remains engaged
with the Environment Agency (the "EA") with regards to obtaining the final
permit required for the Mineral Processing Facility.  The EA has requested
further modelling work to be carried out around the historic issue of the
processing plant causing low frequency noise and although the Company is
confident that the revised Project plan has eliminated this issue as well as
significantly mitigated the general noise impact of the Project, the Company
is currently liaising with the EA on timescales required to complete this
work. This means the overall timeline to receiving this permit could extend
further than initially anticipated, however, this does not currently fall on
the critical path for Project restart.

 

 

Funding and Strategic Review

 

The Company is actively engaged in advanced negotiations with potential
funding partners in respect of a combination of royalty, debt and equity
financing, in order to secure the funds necessary to complete the Project.
This will be a major focus of the new CEO and this process will be undertaken
with the assistance of Hannam & Partners and VSA Capital.

 

In the unlikely event that the Company is unable to secure sufficient
near-term funding to continue to advance the Project as planned, the Board
would need to reappraise the scope and timing of Project delivery.  Further
updates will be made as and when appropriate.

 

 

 

David Cather, Chairman of Tungsten West, commented:

 

"On behalf of the Board and the Company, it is a pleasure to welcome Neil to
the senior executive team.

 

"Neil has extensive experience in operational integration, stakeholder
engagement and business development, having successfully provided management
support at a number of operations. These skills, amassed over an impressive
career, will be invaluable to Tungsten West as it continues to progress
towards becoming a sustainable tungsten and tin producer.

 

"I would like to thank Francis for his contribution since joining the Board in
2019, especially for his guidance through the early funding process and the
transition to a listed company. I would also like to thank Grace for her
dedication leading the Audit and Risk Committee and overseeing the Company's
drive to meet the highest governance standards expected of a listed company.

 

"We are entering a pivotal time for the Company and, with someone with Neil's
background at the helm, I am highly confident that we will complete a
successful Project financing and continue to drive value for all
stakeholders."

 

Neil Gawthorpe, Incoming Chief Executive Officer of Tungsten West, commented:

"It is a privilege to join Tungsten West as CEO and to help deliver the
world-class Hemerdon project for the Company, local community and the nation.
Having had already worked with the Tungsten West team in an advisory capacity,
I have no doubt this will be a smooth transition and I look forward to
bringing this exciting project online.

 

"It is my immediate priority to conduct a review of the funding options and
timeline for the Project and update the market with the results shortly."

 

 

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.

 

 

Enquiries

 Tungsten West                                                              Strand Hanson

 Neil Gawthorpe/ Nigel Widdowson                                            (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                                                   +44 (0)20 3005 5000

 Email:  tungstenwest@blytheray.com (mailto:tungstenwest@blytheray.com)     Hannam & Partners

                                                                            (Joint Broker)

                                                                            Andrew Chubb / Matt Hasson / Jay Ashfield

                                                                            +44 (0)20 7907 8500

Follow us on twitter @TungstenWest

Ends

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