Tungsten West plc (LON:TUN), the mining company focused on restarting production at the Hemerdon tungsten and tin mine in Devon, UK, has announced that it has agreed terms with the National Wealth Fund, a wholly owned entity of the UK Government, regarding a proposed investment of up to £71 million, completing the funding package for the restart of Hemerdon to full production and supporting the development of a secure, domestic source of tungsten for the UK.
Highlights
· The proposed investment consists of:
o an equity investment of £36.0 million via the subscription of 100 million new ordinary shares of £0.01 each in the capital of the Company at a subscription price of 36 pence per share resulting in NWF holding approximately 7.42 per cent. of the voting rights of the enlarged issued ordinary share capital of Tungsten West; and
o a debt financing facility of up to £25 million plus a non-committed £10 million accordion facility.
· The UK Government will also be provided with a limited period to conclude an offtake agreement for up to 50 per cent. of Hemerdon’s 2025 Feasibility Study tungsten production.
· Proceeds of the Fundraising will be used to support the restart of the Hemerdon project and to repay the Short-Term Loan Facility, announced on 21 May 2026.
· NWF’s proposed investment represents significant UK Government backing for the restart of Hemerdon and recognises the strategic importance of establishing a secure domestic supply of tungsten, a critical mineral essential to the UK’s manufacturing, high-technology supply chains, aerospace, next generation energy and defence programmes.
· The Company and NWF have entered into a shareholder relationship agreement, which includes the right for NWF to nominate one Non-Executive Director to the Board of the Company, and a board observer until the Non-Executive Director is appointed. The appointed Non-Executive Director will be announced in due course.
· Through the backing of the NWF and UK Government, Tungsten West is unlocking a critical supply of tungsten, supporting economic growth in the South West of England through the creation of 350 direct jobs while strengthening UK supply chain resilience.
Project update
Tungsten West has already produced tungsten and tin concentrate in the previous month as part of the Company’s re-start plans and is undertaking final completion testing in preparedness to start production within Q3 2026. In addition to this, the Company is well advanced with significant offtake negotiations with a major down-stream tungsten refiner.
John Healey, Chancellor of the Exchequer, said:
“We are living in a more dangerous world, which is why backing British industry is more important than ever before. That is what this deal does. We are tapping into one of the largest deposits of tungsten in the world, right here in the UK.
“This investment will supply vital minerals to British defence, energy and aerospace businesses – and keep good, well-paid jobs in the UK. All part of this Government’s commitment to drive growth in every postcode, back British business and keep our country safe.”
Jonathan Reynolds, Secretary of State for Business and Trade of the United Kingdom, said:
“The National Wealth Fund’s investment is a major vote of confidence in our critical minerals sector and another step forward in the Prime Minister’s plan to reindustrialise Britain, which will support skilled jobs across Devon and unlock a new supply chain to power UK industry.
“This is our Critical Minerals Strategy in action: doubling down on projects like Tungsten West’s which will boost our economic resilience, strengthen supply chains and drive good growth in the South West and across the UK.”
Jeff Court, CEO of Tungsten West, commented:
“We are incredibly pleased to welcome the UK Government’s National Wealth Fund as a long-term equity partner in the development of the Hemerdon mine. Hemerdon is a world class, low cost and long-life tungsten and tin resource in the UK. It is extremely important to us that we prioritise UK requirements for this critical metal to support domestic demand, including strategic initiatives across defence and next generation energy.
“Hemerdon will be a long-term creator of economic benefits for the South West, including the generation of a significant number of direct and indirect jobs. Through the support of the UK Government, we are ensuring that critical minerals produced at Hemerdon will underpin the UK’s national interests for the long term.”
Oliver Holbourn, CEO of the National Wealth Fund, said:
“There is strong and increasing global demand for tungsten, supported by its strategic applications in defence, next generation energy and aerospace. In Hemerdon, the UK has one of the largest deposits of tungsten in the world right on our doorstep. The National Wealth Fund’s investment is unlocking this domestic supply, and we are working closely with both Tungsten West and Government to ensure that this significant strategic asset can deliver for UK industry.”
Further details of the Fundraising
Equity Investment
Under the terms of the subscription agreement (“Subscription Agreement“), entered into by NWF and Tungsten West, the NWF has made an equity investment of £36.0 million (before expenses) in Tungsten West through the subscription of 100 million new Ordinary Shares at a price of 36.0 pence per share, representing a discount of 7.5 per cent. to the 20-day volume weighted average price of the Ordinary Shares of the Company up to and including 19* August 2026. The Subscription Agreement contains customary warranties given by the Company and the NWF together with a period granted by the Company to the UK Government to negotiate an offtake agreement as outlined below. The subscription is conditional upon, amongst other matters, Admission occurring.
The net proceeds of the Equity Investment will be applied as set out in the Appendix “Sources and Uses” including the repayment of the Short-Term Loan Facility, announced on 21 May 2026.
Relationship Agreement
The Relationship Agreement regulates the relationship between NWF and the Company and is effective from Admission. It provides NWF with the right, amongst other matters, to nominate one Non-Executive Director to the Board of the Company, subject to customary due diligence by the Company’s Nominated Adviser and other customary terms, and board observer rights until such appointment. The Relationship Agreement will remain in force for so long as NWF holds 50 million Ordinary Shares or more. The Relationship Agreement provides certain market standard protections to ensure, inter alia, that Tungsten West is capable of carrying on its business independently of NWF as a shareholder. Subject to the applicable law and regulation, it also provides NWF with certain information rights, protections and veto rights over significant changes to, amongst other matters, the Company’s business plan and the issue of equity save for certain circumstances, for 12 months.
Under the Relationship Agreement, NWF has the right to be consulted in the event of future equity fundraises by the Company, for cash, representing more than 5 per cent. of the issued ordinary share capital of the Company that are not subject to statutory pre-emption rights with the opportunity to participate on a pro rata basis to their holding. The Company provides certain undertakings in relation to the manner it will conduct its business consistent with industry practice.
Debt Facility
NWF (as lender) has agreed terms with the Company (as Guarantor) together with its subsidiaries, Drakelands Restoration Limited (as Borrower), Tungsten West Services Limited (as Guarantor) and Aggregates West Limited (as Guarantor) in relation to a proposed debt facility.
The key terms of the proposed Debt Facility are:
· £25 million;
· Accordion facility (uncommitted): £10 million;
· Interest rate of SONIA + 5.5 per cent. (approximately 9 per cent. per annum), increasing by 1 per cent. per quarter;
· Early repayment of the Debt Facility with the agreed prior notice;
· Term of 366 days from the date of the definitive agreement; and
· Secured fully fixed and floating debenture over certain assets of the Company and its subsidiaries.
It is expected that the definitive agreement will contain the customary warranties, indemnities, undertakings and arrangement fee for an agreement of this nature and will only be effective following the repayment of the Short-Term Loan Facility, announced on 21 May 2026. A further announcement will be made in due course.
Hannam & Partners acts as adviser for Tungsten West in relation to the proposed Debt Facility.
Offtake
From Admission, the Company will enter into a limited negotiation period with UK Government to conclude an offtake agreement to purchase up to 50 per cent. of the 2025 Feasibility Study tungsten production.
Admission and Total Voting Rights
Application have been made for the new Ordinary Shares, allotted and issued pursuant to the Subscription Agreement, to be admitted to trading on AIM. Admission is expected to become effective on or around 27 August 2026.
Immediately following Admission, the issued ordinary share capital of the Company is expected to comprise 1,347,672,923 Ordinary Shares and 257,075,833 B shares. Each Ordinary Share has one voting right and no Ordinary Shares are held in treasury. From Admission, this figure may be used by Shareholders as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA’s Disclosure Guidance and Transparency Rules.
Appendix – Sources and Uses
| Sources and Uses up to Scheduled Peak Funding Date | GBPm |
| Opex – mining | 3 |
| Opex – processing | 2 |
| Opex – other (Including Labour) | 8 |
| Financing costs | 4 |
| Working capital | 6 |
| Mining capital | 7 |
| Hemerdon site project costs | 16 |
| Other project costs | 5 |
| Bridge loan repayment | 18 |
| Environment Agency Financial Provision | 5 |
| Cash reserves | 13 |
| Total Uses | 88 |
| Opening cash balance | 7 |
| Environment Agency Financial Provision Recovery | 5 |
| Interest | 0 |
| Equity | 36 |
| Debt facility | 25 |
| Revenue received | 15 |
| Total Sources | 88 |
* Note: Figures may not sum due to rounding.
