Tungsten West (LSE:TUN) has obtained a binding US$25 million unsecured bridging loan from an entity controlled by major shareholder Gregory Coffey, providing funding support for the restart of the Hemerdon mine in Devon. The financing is intended to cover the first phase of restarting the site’s fines gravity processing operations, which are scheduled to begin in the third quarter of 2026.
The loan facility carries an interest rate of SOFR plus 4.5% and has a term of 366 days. It is expected to act as interim funding ahead of a larger debt package of up to US$85 million that is currently in final documentation stages. Part of the longer-term financing arrangement is anticipated to refinance the bridge facility once completed.
Operational work at Hemerdon continues to progress in line with the company’s timetable. Tungsten West said refurbishment of both the fines and coarse gravity processing circuits remains on schedule, with commissioning targeted for the third and fourth quarters of 2026. Full project commissioning is expected during early 2027, supporting plans to ramp processing capacity up to 500 tonnes per hour.
The company added that it continues to benefit from a favourable tungsten concentrate pricing environment and is advancing discussions regarding offtake agreements. Recruitment activity is also increasing, with staffing expected to rise by more than 120 employees by the end of June. Alongside this, the business is expanding operational capacity and introducing new Komatsu equipment to support the restart programme.
Despite positive operational momentum, the company’s broader outlook remains constrained by financial risks, including ongoing losses, continued cash outflows and negative equity reported in FY2025 alongside higher debt levels. Technical market indicators have recently strengthened, although valuation support remains limited given the absence of profitability and dividend payments.
More about Tungsten West Plc
Tungsten West Plc is a UK-based mining group focused on restarting the Hemerdon tungsten and tin mine in Devon. The company’s strategy centres on phased commissioning of processing facilities to restore production of tungsten and tin concentrates, with the aim of reaching a nameplate processing capacity of 500 tonnes per hour during 2027. Tungsten West is targeting growing demand for strategically important tungsten supply within European and global markets.
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