tungsten West Plans £39M AIM Float for Plymouth Tungsten Mine
- Category: Tungsten’s News
- Published on Wednesday, 13 October 2021 21:42
Tungsten West plans to list £39 million on AIM and prepare for full production from the Plymouth tungsten mine. The company has also raised £36 million from investors and now expects to have enough cash to mine the world's third-largest tungsten reserve.
The company will begin selling shares on the London Stock Exchange, which will value the business at £106.2 million and allow it to begin full production. Tungsten West will now issue 65,000,000 new ordinary shares, representing approximately 36.7% of the Company's issued share capital, at a price of £0.60 per share and has applied to trade on the Stock Exchange's Alternative Investment Market (AIM).
The directors of the company believe that an IPO and access to the AIM market will increase the visibility of the business and its products and provide a supportive platform to further develop the business through licensing other technologies or selective acquisitions.
Max Denning, its Chief Executive Officer said: "We are pleased to announce our decision to list Tungsten West on the Alternative Investment Market of the London Stock Exchange, offering UK stakeholders and interested parties the opportunity to invest in the British Hemerdon Tungsten Mine, the third-largest tungsten resource in the world."
"As well as being exciting for the UK mining industry, it is exciting to have a project at an advanced stage of development that will produce strategically important materials that are critical to the manufacture of new technologies, including those that will help the UK achieve its net zero emissions targets."
"We look forward to welcoming new investors into this compelling venture and working with all our stakeholders to ensure that the newly revitalized Plymouth tungsten mine becomes a beacon of mining excellence in the UK."
Tungsten West's bankable feasibility study indicates reserves of approximately 63.3Mt (metric tons) at 0.18% tungsten and 0.03% tin, with 37.4Mt of saleable aggregate. The company estimates the current mine life to be 18.5 years, with the opportunity to extend it with future investment.
Tungsten is used to make drilling and cutting tools, which are widely used in the technology sector, construction, and automotive industries, and are likely to be in greater demand in the coming years when electric vehicle production increases.
Tin is critical to circuit board production, and the mine single-handedly made the UK the 15th largest producer in 2018, with the potential to move into the top 10.
Much of the infrastructure is already in place at the Hemerdon mine and the previous owner, Wolf Minerals Ltd, has invested over £170 million in the development of the mine and its processing facilities, which include an open pit mine, mineral processing facilities, and mine waste facilities.
The development costs associated with restarting the mine are estimated at £44.6 million due to the extensive existing infrastructure. This existing infrastructure also means that redevelopment is expected to take only 12 months, with some restart projects already underway.
After acquiring the property, Tungsten West completed a significant amount of work that allowed it to understand and address the issues encountered in the history of the Wolfe Mine, including a 6113meter geological exploration drilling program and a number of technical studies.
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