A company looking to restart production of tin and the rare metal tungsten at its mine in Devon has announced it could cease operations if it does not secure funding by March 2024.
Tungsten West, which owns the Hemerdon mine site near Plymouth, confirmed in May 2023 that it had raised a total of up to £6.95m by way of convertible loan notices, in two tranches. The AIM-listed firm confirmed earlier this month (December 18) it had raised £1.8m by way of Tranche C of the 2023 convertible loan notes.
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However on Friday (December 22) Tungsten West, in its interim results, reported a half-year loss of £9.1m, while three rounds of redundancies left the businesses with just 15 permanent staff, "focused only on environmental and corporate compliance, permitting and funding activities".
The company said in an update on the London Stock Exchange if it fails to find purchasers for its latest set of loan notes or other sales, then it expects it would run out of money in March 2024.
In a statement it said: "Going concern is reliant on further funding being secured by the end of March 2024, or the receipt of funds form the sale of certain assets and/or ongoing aggregate sales, without which the group would be unable to pay its liabilities as they fall due beyond this point."
Tungsten West also warned “there are many risks that could impact the company’s ability to reach construction through to commercial production”.
Neil Gawthorpe, chief executive of Tungsten West however, remained positive and said: "This period has seen some challenges for the Company as we continue to navigate difficult market conditions. However, there have been many positives to take from the last six months and progress has been made at Hemerdon.
"The formal submission of the Mineral Processing Facility permit, following the completion of the low frequency noise trials, is a positive step forwards and, despite the delays and additional questions from the Environment Agency, we continue to have a positive relationship with the team and an open dialogue with them. Additionally, the approval of the Section 73 application marks further progress and will augment the Project.
"Furthermore, the production of tin and tungsten from legacy material marked a significant milestone in the Company's progress and is an indication of what can be achieved once the mine is re-opened."
He added: "Tungsten and tin remain critical minerals and are essential to everyday living, as well as being crucial in future green and emerging technologies. Tungsten West aims to help provide a secure supply chain of these critical minerals."
