Tungsten West has secured a binding $25m (£18.63m) bridging loan to facilitate the phased restart of the Hemerdon tungsten and tin mine in Devon, UK.
The loan was provided by an entity controlled by substantial shareholder Gregory Coffey.
It features an interest rate starting at the secured overnight financing rate plus 4.5%, increasing by 1% quarterly.
With a 366-day term, the facility is unsecured and can be repaid at any time without penalties.
The company has completed the final stage of due diligence on a more extensive debt package valued at up to $85m.
Finalisation of the necessary documentation is under way, and this larger facility will be used in part to repay any funds drawn from the bridging loan.
Maintaining its schedule, Tungsten West plans to begin fines gravity processing in the third quarter of 2026 (Q3 2026).
This phase involves refurbishment of the fines gravity circuit using third-party mobile crushing and washing solutions, with feedstock sourced from former operators' ore stockpiles.
The fines gravity circuit is set to commence operations at an initial capacity of up to 100 tonnes per hour (tph), with its full installed capacity being around 200tph.
Tungsten West has entered into an agreement with Duo Operations to provide these services.
By Q4 2026, the coarse gravity circuit’s refurbishment is expected to progress, utilising pre-concentration methods with a mobile pressure jig system and the previously installed dense media separation system.
Commissioning of the full project is set for Q1 2027, aiming for a capacity of 500tph throughout the year.
With tungsten concentrate prices consistently above $3,000 per tonne unit in the European market, the company is engaging several parties in offtake discussions.
In response to market demands, Tungsten West is working to expand its production capabilities.
Recruitment of more than 120 new staff is planned by June 2026 to support operations.
Six pieces of Komatsu heavy mobile equipment are already on-site for preparatory work, with the first fleet of primary earth-moving equipment expected to arrive in the same month.
Tungsten West CEO Jeff Court said: “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.”
