Tungsten West Nears £50m Equity Raise for Devon Mining Project
London-listed mining company Tungsten West is in advanced discussions with investors regarding a significant share sale that could raise between £40 million and £50 million in new funding. The capital-raising initiative, which sources indicate could be confirmed imminently, aims to provide additional financing for the company's tin and tungsten extraction project at the Hemerdon site in Devon.
Strategic Move Amid Global Mineral Demand Surge
The fundraising effort comes at a pivotal moment as global demand for critical minerals escalates against a backdrop of increasing geopolitical tensions. Tungsten represents a vital industrial mineral utilised extensively across multiple sectors, with particular significance in defence systems, energy infrastructure, and automotive manufacturing.
Currently, China dominates approximately 80% of global tungsten production, a concentration that has raised substantial concerns among Western economies regarding supply chain vulnerabilities. These concerns have been amplified by recent export controls and strategic stockpiling initiatives, including a substantial $12 billion investment plan announced by the United States this week to secure critical mineral reserves including rare earths, copper, and lithium.
Hemerdon Mine: A Strategic Western Asset
The Hemerdon mine in Devon represents one of the largest tungsten deposits in the Western world, though it has remained non-operational since 2018 under previous ownership. Tungsten West, which listed on London's AIM market in 2021, has been working systematically to restart production at the site, viewing it as a strategic asset for reducing Western dependence on Chinese tungsten supplies.
In a recent market update, the company reported substantial progress in securing debt financing for the project while highlighting dramatic improvements in market conditions. Tungsten prices have surged by over 200% since late 2024, while tin prices have increased by more than 70%, significantly enhancing the project's economic viability.
Market Position and Strategic Vision
Jeff Court, Chief Executive of Tungsten West, emphasised the transformative shift in market dynamics, stating: "The structural shift in the tungsten market that we have seen since the end of 2024 reflects the ever growing need to provide critical mineral diversification and supply chain resilience to Western economies."
The company believes it can eventually produce approximately 25% of the world's non-Chinese tungsten supply, positioning itself as a significant player in global mineral security. With a current market valuation of just over £205 million following a 13% share price increase to 29.9p on Wednesday, the equity raise represents a substantial strategic move to accelerate project development.
While the precise pricing of the new shares remains undisclosed, and the company declined to comment on Wednesday evening, industry observers view this capital-raising initiative as a critical step toward establishing a major Western tungsten production hub at a time of unprecedented demand for supply chain diversification.
