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Highlights
- ungsten West, a British tin and tungsten developer, is planning an AIM float on 21 October.
- No details about the IPO issue price or market value have been confirmed as yet.
- The proceeds from the IPO will be used to restart its Hemerdon Mine production operations and to complete a capital expenditure programme.
UK-based leading tin and tungsten mining company Tungsten West said that the company is planning to float on the London Stock Exchange’s (LSE) junior market, the Alternative Investment Market (AIM). Trading is set to start on 21 October.
Tungsten West’s IPO details
The company has not confirmed any other details regarding its IPO, including its issue price range or market valuation, as yet. The tungsten mining developer had previously postponed its initial public offering (IPO) plans.
The company has hired UK’s independent boutique advisory merchant bank Strand Hanson Ltd. as its nominated advisor and British brokerage firm H & P Advisory Ltd. as its broker for the IPO.
Tungsten West plans to raise funds to help complete a planned capital expenditure programme and also restart its Hemerdon Mine production. The company will need to revamp and upgrade the plant prior to resuming.
According to Business Live, the company had planned to raise about £60 million and was reportedly in discussions to raise about £40 million in funding from specialist mining investors and aimed to raise £20 million from an IPO.
Tungsten West’s Hemerdon mine
Tungsten West had acquired the Hemerdon mine out of receivership in a deal worth up to £5.4 million in 2019.
Tungsten west was created as a special purpose vehicle in order to acquire the Hemerdon mine. The Hemerdon mine was operational from 2015 to 2018 under its former owner, Wolf Mineral Ltd, following which the mine had gone into receivership.
The Hemerdon mine, located in Plymouth, in the southwest of England, is among one of the largest tungsten mines in the world.
The mine is estimated to have a resource presence of about 325 million tonnes at 0.12 per cent of tungsten trioxide and 0.03 per cent tin, according to a JORC industry standard compliant estimate.
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Also, the mine is expected to have an estimated output of 3,800 tonnes per year of contained tungsten and 500 tonnes per year of contained tin.
The Hemerdon mine is expected to achieve its full capacity by the end of next year. The mine currently has a staff of 30 people.
Once the company raises the capital required for the mine revamp, it could hire about 300 workers at the site. This is also expected to boost the regional economy.
The company’s CEO, Max Denning, had said the company targets being a supplier of about 3 per cent of tungsten’s global demand.
Bottom Line
Tungsten, tin and other metals in the Southwest of England are expected to be a key component in the UK’s decarbonisation plans as they form a key component in the production of new electric vehicle batteries.
