LONDON: Tungsten West said Tuesday it has secured up to £71 million in funding from the U.K. government’s National Wealth Fund to restart production at the Hemerdon tungsten and tin mine in Devon, completing the financing package for what officials called a strategically critical domestic source of the mineral.
The proposed investment includes a £36 million equity stake and a debt facility of up to £35 million, the company said. The National Wealth Fund, a wholly owned government entity, will acquire 100 million new shares at 36 pence each, giving it approximately 7.42% of the enlarged voting rights.
“We are living in a more dangerous world, which is why backing British industry is more important than ever before,” Chancellor of the Exchequer John Healey said in a statement. “That is what this deal does. We are tapping into one of the largest deposits of tungsten in the world, right here in the U.K.”
Tungsten, a critical mineral used in defense, aerospace, high-technology manufacturing and next-generation energy systems, has no domestic production in the U.K. The Hemerdon project, one of the world’s largest tungsten deposits, is expected to create 350 direct jobs in the South West of England.
The government will also enter a limited negotiation period to secure an offtake agreement for up to 50% of the mine’s production, based on the company’s 2025 feasibility study.
Tungsten West said it has already produced tungsten and tin concentrate in recent weeks as part of its restart preparations and is conducting final testing ahead of planned production startup in the third quarter of 2026. The company said it is also in advanced offtake negotiations with a major downstream tungsten refiner.
The equity investment is priced at a 7.5% discount to the company’s 20-day volume-weighted average share price through Aug. 19. The debt facility carries an interest rate of SONIA plus 5.5%, about 9% annually, with the rate increasing by 1 percentage point per quarter. The debt has a 366-day term and is secured against company assets.
Under a shareholder relationship agreement, the National Wealth Fund gains the right to nominate one non-executive director to Tungsten West’s board and appoint a board observer until that director is named.
“Hemerdon is a world class, low cost and long-life tungsten and tin resource in the U.K.,” said Jeff Court, chief executive of Tungsten West. “It is extremely important to us that we prioritise U.K. requirements for this critical metal to support domestic demand, including strategic initiatives across defense and next generation energy.”
Proceeds from the fundraising will support the mine’s restart and repay a short-term loan facility announced in May.
Business and Trade Secretary Jonathan Reynolds called the investment “a major vote of confidence in our critical minerals sector” and part of the government’s plan to reindustrialize Britain.
Hannam & Partners advised Tungsten West on the debt facility. The equity subscription is conditional on admission to trading, with further announcements expected in due course.
