Tungsten West Secures $25m Loan for Hemerdon Mine Restart

Why It Matters

The financing accelerates the return of a domestic tungsten source, reducing European reliance on imports and supporting a market where prices stay above $3,000 per tonne. Successful restart positions Tungsten West to capture premium off‑take contracts and generate significant regional employment.

Key Takeaways

• $25M bridging loan secured from shareholder-controlled entity
• Fines gravity processing to start Q3 2026 at up to 100 tph
• Full plant capacity of 500 tph targeted by Q1 2027
• Larger $85M debt package under due diligence for loan repayment
• Recruitment of 120 staff planned by June 2026

Pulse Analysis

The $25 million bridge loan marks a pivotal moment for Tungsten West, providing the liquidity needed to move from planning to execution on the Hemerdon project. By securing financing on terms tied to the secured overnight financing rate plus a modest spread, the company mitigates cost volatility while demonstrating strong shareholder backing. This bridge is a stepping stone toward a larger $85 million debt facility, which will not only refinance the short‑term loan but also fund the capital‑intensive refurbishment of processing circuits, underscoring the firm’s confidence in sustained tungsten price premiums above $3,000 per tonne in Europe.

Operationally, Tungsten West’s roadmap focuses on a phased restart that leverages mobile crushing and washing solutions from Duo Operations. The fines gravity circuit, slated for Q3 2026, will initially handle up to 100 tonnes per hour, scaling to 200 tph as equipment is added. By Q4 2026, the coarse gravity circuit will be upgraded with a mobile pressure jig and dense‑media separation, paving the way for a full‑scale 500 tph throughput by early 2027. The deployment of six Komatsu mobile units and the recruitment of over 120 staff by mid‑2026 signal a rapid mobilization of both capital and human resources, positioning the mine to meet anticipated off‑take demand.

From an industry perspective, the Hemerdon restart could reshape the European tungsten supply chain, which has long depended on imports from China and other Asian producers. A domestic source not only enhances supply security but also aligns with ESG trends favoring lower‑carbon, locally sourced minerals. Moreover, the project's financing structure—combining a low‑cost bridge loan with a larger syndicated debt package—offers a template for other junior miners seeking to de‑risk capital‑intensive projects. If Tungsten West meets its timeline, investors may see a new benchmark for profitability in the tungsten sector, while the UK mining region could experience a modest economic boost through job creation and ancillary services.