Abenójar Tungsten aims to raise funds for El Moto mine, which it says could meet up to 20% of European demand

LONDON: Abenójar Tungsten, S.A., the developer of one of the world’s largest undeveloped tungsten projects, announced Tuesday that it plans to list on the London Stock Exchange‘s Main Market, seeking investor funds to build a mine in central Spain that it says could help diversify Europe’s supply of a metal critical to defense and industry.

The company said it expects its shares to be admitted to the Official List of the Financial Conduct Authority and to begin trading in the fourth quarter of 2026. It intends to publish a registration document Tuesday, with a full prospectus expected later in October. The final offer price is expected to be set in late October after a book-building process.

About the project

The El Moto Project, in the municipality of Abenójar, has been designated a Strategic Project under the European Union’s Critical Raw Materials Act. At planned production rates, the company says, the mine could supply up to about 20% of European tungsten demand.

Tungsten is classed as both a critical and strategic raw material by the EU. It is used in industrial, defense, aerospace and advanced manufacturing applications. The company noted that global supply is highly concentrated, which has increased attention on supply-chain security.

According to a competent person’s report prepared under Canadian disclosure standards NI 43-101, which forms part of the company’s 2026 definitive feasibility study, El Moto holds a mineral resource of about 91.3 million metric tons at 0.38% tungsten trioxide and 0.41 grams per metric ton of gold. That equates to roughly 346,000 tons of tungsten trioxide and 1.2 million ounces of gold. Proven and probable reserves total about 22.6 million tons, containing roughly 93,000 tons of tungsten trioxide and 293,000 ounces of gold.

The company plans a conventional underground mine with initial processing capacity of 1 million tons a year, rising to 1.5 million tons by 2031 after a two-year ramp-up. The plan envisions 18 years of ore processing within a 20-year mine life, with steady-state output of more than 4,200 tons of tungsten trioxide annually. First production is targeted for 2029.

Projected economics

The feasibility study estimates initial capital spending of about €211 million. Using long-term price assumptions of $1,415 per metric ton unit for tungsten and $3,500 per ounce for gold, and an exchange rate of $1.10 to the euro, it projects a post-tax net present value, discounted at 8%, of about €1.5 billion and a post-tax internal rate of return of about 62%. Pre-tax figures are about €2.0 billion and 68%.

Average life-of-mine cash costs are projected at about €188 per metric ton unit, with all-in sustaining costs of about €236.

The company said it has obtained all key construction and operating permits, including the mining concession and environmental impact declaration, and that early development work is underway. It said its directors are not aware of material organized opposition from environmental or community groups. At full production, El Moto is expected to support about 400 direct and 500 indirect jobs in the Castilla-La Mancha region.

Use of proceeds

Net proceeds from the offering will go toward development and construction of the mine, including the equity contribution expected to be required under a planned project finance facility. Funds will also go toward deferred cash consideration for the company’s acquisition of a 70% stake in Mining Hill’s, S.L., and toward working capital and general corporate costs.

The company bought the stake in April from Promotora de Minas de Carbón, S.A. Mining Hill’s holds the mining concession and leases it to Abenójar Tungsten for a royalty of 6% to 8% of net smelter return. Because the company now controls the concession holder, the effective royalty to the group falls to 1.8% to 2.4%, reflecting the 30% minority shareholder’s share. The company described the deal as a related-party transaction and said the €14.95 million price was set by reference to an independent valuation.

Financing and sales

Abenójar Tungsten said it has a conditional, credit-approved term sheet with Deutsche Bank for a project finance facility of up to €110 million in senior debt and up to €9.45 million in contingent debt. The facility remains subject to final documentation and conditions.

On Saturday, the company signed a binding, take-or-pay offtake agreement with Traxys Europe, S.A. covering all of its tungsten concentrate output. The deal runs from commissioning until the later of the end of the tenth year of commercial production and delivery of specified minimum tonnages. The company will receive the final sales value Traxys achieves, minus supply chain costs and a trade fee.

Offer structure and governance

The offering will be made to qualified institutional buyers in the United States under Rule 144A and to institutional investors elsewhere under Regulation S. Retail investors in the United Kingdom will be able to participate through RetailBook’s network of investment platforms, brokers and wealth managers, subject to those partners’ participation.

BMO Capital Markets and Peel Hunt are joint sponsors, global coordinators and bookrunners. Deutsche Bank is a joint global coordinator and bookrunner, and Canaccord Genuity is a joint bookrunner.

The company expects a free float of at least 10% at listing, in line with UK Listing Rules. Founder and CEO Gonzalo García San Miguel is expected to be a controlling shareholder afterward, and the company will sign a relationship agreement with him. The company, its directors and certain existing shareholders are expected to agree to customary lock-ups.

Executives’ comments

“When we founded ABT, our objective was clear: to develop El Moto and establish a new long-term source of tungsten supply in Europe,” García San Miguel said. He said the aim is to run a low-cost mine “capable of remaining competitive across commodity price cycles.”

Chairman Roger Davey said the García San Miguel family has built and operated mines in Spain over several generations. He said the listing is a natural next step and would raise the company’s profile and open access to international investors. He also cited recent funding from the Spanish government as a sign of national support.

Growth options

The company said it plans further work to upgrade its resources and reserves and extend the mine’s life, and to study ways to improve gold recovery. It also has pending applications for nearby exploration permits, and said it may evaluate downstream processing, including ammonium paratungstate, tungsten oxides, tungsten carbide and tungsten metal.

The registration document will be available through the FCA’s National Storage Mechanism once approved, and on the company’s website, subject to access restrictions.