LONDON - Tungsten West (LON:TUNT) Plc (LON:TUN), the mining company focusing on the Hemerdon tungsten and tin mine in Devon, UK, reported a loss of £13.9 million for the six months ending September 30, 2024. The company, which is working on restarting production at the Hemerdon project, also disclosed the issuance of £4.90 million in convertible loan notes over two tranches, with a provisional agreement for an additional £2.8 million tranche.
During this period, the Environment Agency granted a permit to operate the Mineral Processing Facility (MPF), and ADP Marine & Modular was appointed for engineering work on the MPF. Mining Plus was contracted to complete select sections of the updated restart economic assessment feasibility study.
Post the reporting period, Jeff Court joined as CEO in early October, bringing over 30 years of mining sector experience. Stephen Harrison was appointed as Non-Executive Chairman in December, after David Cather stepped down but remained a Non-Executive Director.
The company highlighted the strategic importance of the Hemerdon mine, citing current national and international discussions on critical minerals supply chain security. Tungsten West expressed confidence in securing the necessary funding capital to bring Hemerdon back into production following the completion of the feasibility study.
Despite the reported loss and cash reserves of only £0.04 million as of September 30, 2024, the Board remains optimistic about the long-term prospects of the Hemerdon mine and its commodities. The company is pursuing several routes to move directly to front-end engineering and design, including prior grant applications to the Defence Industrial Base Consortium.
However, there remains uncertainty regarding further funding, which is crucial for the group's ability to continue as a going concern. The Group had £0.4 million in cash reserves at the end of November 2024. The company is in the process of finalizing the documentation for approximately £2.8 million in Tranche G funding with existing convertible loan note holders. If the Group fails to find purchasers for the Tranche G notes, it may not be able to meet its liabilities from January 2025.
This article is based on a press release statement from Tungsten West Plc.
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