Tungsten West Plc (LSE:TUN) has raised approximately £41.37m in gross proceeds through an oversubscribed equity fundraising, combining a placing with institutional investors and a substantial direct subscription from a well-known international investor. The shares were issued at 18 pence each, a slight premium to the 30-day VWAP but still below the company’s most recent closing price.
The fundraising included £351,522 of participation from directors and significant backing from major shareholder Lansdowne. Proceeds are expected to strengthen the balance sheet, broaden the institutional shareholder base, and support progress toward securing project debt financing. Despite the successful raise, the company continues to face financial headwinds, including ongoing losses, cash outflows, and an expected move into negative equity in FY2025 as debt increases.
The new capital will be directed toward restarting and accelerating the recommissioning of the Hemerdon tungsten and tin mine in Devon, with management aiming to bring the asset back into production against a backdrop of strong tungsten and tin prices. Technical indicators point to a solid upward trend in the shares, although overbought conditions suggest some near-term risk. Valuation remains difficult to gauge given the lack of profitability and the absence of dividend support.
More about Tungsten West Plc
Tungsten West Plc is an AIM-listed mining company focused on restarting operations at the Hemerdon tungsten and tin mine in the UK. The company’s strategy is centered on bringing this strategically important asset back into production and positioning the business to benefit from demand for critical minerals.
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