Tungsten West secured US$25 million financing to restart Hemerdon mine amid strong tungsten prices, despite ongoing financial and operational risks.
Tungsten West Plc, a UK-based mining company, has secured a crucial US$25 million unsecured bridging loan, marking a significant step towards restarting production at its Hemerdon tungsten and tin mine in Devon. The loan, provided by an entity controlled by major shareholder Gregory Coffey, is designed to fund the initial phase of fines gravity processing, slated for the third quarter of 2026. This short-term facility, carrying an interest rate of SOFR plus 4.5%, is currently in final documentation and will partially refinance the bridge loan.
Operationally, the Hemerdon project remains firmly on schedule. Refurbishment of both the fines and coarse gravity circuits is progressing as planned, with commissioning of the fines circuit anticipated in Q3 2026 and the coarse circuit in Q4 2026. Full project commissioning is targeted for early 2027, with a ramp-up to a nameplate processing capacity of 500 tonnes per hour expected during that year. To support this ambitious timeline, Tungsten West is actively advancing offtake discussions, significantly ramping up recruitment with over 120 new personnel expected by the end of June, and expanding its production capabilities, including the deployment of new Komatsu heavy mobile equipment already on site for preparatory mining works. The company has also transitioned to a self-perform mining model and engaged Duo Operations Limited for crushing and wash plant services.
The restart comes amid a highly favorable economic and industry backdrop. Tungsten concentrate prices remain strong, with APT pricing exceeding US$300 per metric tonne unit (mtu). Current market prices for both tungsten and tin are significantly higher than the benchmarks used in Hemerdon’s original feasibility study. Tungsten prices are currently around US$399/mtu, compared to the earlier estimate of US$400/mtu, while tin prices have climbed above US$46,000 per tonne versus the projected US$32,500 per tonne. These elevated prices are largely driven by tight global supply and restrictions on Chinese exports, substantially improving the project’s economic viability and positioning Tungsten West to help address the growing supply gap for strategic tungsten concentrate.
While the bridge loan, being from a related party, carries some inherent considerations, it underscores strong shareholder support for the project's restart trajectory. However, TipRanks' AI Analyst "Spark" maintains a "Neutral" rating on TUN stock, citing ongoing financial risks such as continuous losses, cash burn, negative equity in FY2025, and increased debt, despite positive technical momentum. The successful restart of Hemerdon also represents a potential turnaround for the site, which saw its previous operator, Wolf Minerals, collapse into receivership in 2018 due to operational and structural challenges that Tungsten West claims to have addressed.
