REG - Tungsten West PLC - Q1 2026 Project Funding and Debt Update

Tungsten WestAnnouncement

Today 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260521:nRSU2493Fa&default-theme=true

RNS Number : 2493F  Tungsten West PLC  21 May 2026

21 May 2026

 

Tungsten West Plc

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

 

Q1 2026 Project Funding and Debt Update

 

Tungsten West (AIM: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 provide a Project Funding and debt update.

 

Project Funding Update

 

The Company has entered into a binding US$25.0 million bridging loan facility
(the "Short-Term Loan Facility") with  an entity controlled by Gregory
Coffey.  As previously announced, the Short-Term Loan Facility will fund the
Project up to the first phase restart of fines gravity processing in Q3 2026.

 

The key terms of the Short-Term Loan Facility are:

 

·    US$25.0 million;

·    Interest Rate of SOFR + 4.5% (approximately 8% per annum), increasing
by 1% per quarter;

·    Term of 366 days; and

·    Unsecured and repayable at any time, without penalty or make whole
fee.

 

Final stage due diligence of the larger debt package of up to US$85.0 million
(the "Facility") is complete, and definitive documentation for the Facility is
being finalised with the lender, which will be partially utilised to repay any
funds provided under the Short-Term Loan Facility.

 

Project and Market Update

 

·    The Company remains on track to deliver the restart of the Project
within budget on the previously announced timelines:

o  Fines gravity circuit refurbishment is well progressed, and commissioning
is expected in Q3 2026. Fines will be generated using a third-party mobile
crushing and wash plant solution, with feedstock sourced from the previous
operators' ore stockpiles. The fines gravity circuit will initially be run at
up to 100 tonnes ("t") per hour (fines gravity installed capacity is
approximately 200t per hour). The Company has entered into an Agreement with
Duo Operations Limited to provide mobile crushing and wash plant services on a
variable cost basis.

o  Coarse gravity circuit refurbishment is progressing well, with
commissioning expected in Q4 2026. The initial flow sheet will consist of
pre-concentration using a mobile in line pressure jig system and the
previously installed Dense Media Separation ("DMS") system. Feedstock will be
sourced from exposed ore, with minimal stripping. Although initial throughput
will be lower, in this configuration, the coarse gravity circuit will be
capable of processing approximately 150t per hour.

o  Full project commissioning is expected in Q1 2027. This will allow the
Company to ramp up to nameplate capacity of 500t per hour over the course of
2027.

·    The tungsten concentrates market remains very strong, with pricing by
the European market index pricing ("APT") consistently above US$3,000/metric
tonne unit. In relation to offtakes, the Company has well progressed
discussions with multiple parties.

·    A recruitment programme is ongoing, with over 120 new personnel
expected to have been onboarded by the end of June 2026.

·    Six pieces of Komatsu heavy mobile equipment are currently onsite and
conducting preparatory mining works. The first fleet of Komatsu primary earth
moving equipment is expected to arrive at site in June 2026.

·    In response to recent market conditions, the Company has commenced a
project to materially increase the production capacity of the operation,
including significant additional capacity in the new build programme currently
underway.

 

Related party transaction

 

As the entity is controlled by Gregory Coffey, a substantial shareholder of
the Company, the transaction will constitute a related party transaction under
Rule 13 of the AIM Rules for Companies.

 

The Company's Directors consider, having consulted with Strand Hanson Limited,
acting in its capacity as the Company's Nominated Adviser, that the terms of
the Short-Term Loan Facility are fair and reasonable insofar as the Company's
shareholders are concerned.

 

Jeff Court, CEO of Tungsten West, commented:

 

"We are thankful for the support of our shareholder, who has provided the
bridging loan facility on favourable terms. Over the coming weeks, we look
forward to concluding our remaining debt financing package, which will allow
us to maintain our rapid development pace and deliver tungsten and tin
concentrate into the market from Q3 2026."

 

Mineral Processing Facility project works underway at Hemerdon with the mining
operation in the background.

 

 

Ends

 

For further information, please contact:

 

 Tungsten West                          Strand Hanson Limited

 Jeff Court, Chief Executive Officer    (Nominated Adviser and Financial Adviser)

 Phil Povey, Chief Financial Officer    James Spinney / James Dance / Abigail Wennington

 Tel: +44 (0) 1752 278500               Tel: +44 (0) 207 409 3494

 BlytheRay                              Hannam & Partners

 (Financial PR)                         (Broker)

 Megan Ray / Rachael Brooks             Andrew Chubb / Matt Hasson / Jay Ashfield

 Tel: +44(0) 20 7138 3204               Tel: +44 (0)20 7907 8500

 Email:  tungstenwest@blytheray.com

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCKZGZKKMLGVZG



            Copyright 2019 Regulatory News Service, all rights reserved