Tungsten West Secures $25 Million Bridging Loan, Accelerating Hemerdon Mine Restart in a Critical Market
Plymouth, UK – May 22, 2026 – Tungsten West Plc, a prominent player in the European critical minerals space, has announced a crucial financial milestone in its efforts to bring the Hemerdon tungsten and tin mine in Devon, UK, back into production. The company has successfully secured a binding $25 million (£18.63 million) bridging loan, a strategic funding mechanism designed to facilitate the phased restart of this globally significant asset. This development underscores the accelerating pace of the project and its strategic importance to a market increasingly focused on secure, domestic supplies of essential industrial metals.
The bridging loan was extended by an entity under the control of Gregory Coffey, a substantial shareholder in Tungsten West, demonstrating strong insider confidence in the project's viability and future prospects. This type of financing, often used to bridge short-term capital requirements, is instrumental in maintaining project momentum while larger, longer-term funding arrangements are being finalised. As such, it provides immediate liquidity, preventing any potential delays in the restart schedule.
Strategic Financial Underpinnings for a Phased Restart
The terms of the newly secured bridging loan reflect a carefully structured financial arrangement tailored to support the imminent operational ramp-up at Hemerdon. The facility carries an interest rate commencing at the secured overnight financing rate (SOFR) plus 4.5%, with a quarterly escalation of 1%. With a 366-day term, the loan offers considerable flexibility, being unsecured and allowing for repayment at any point without incurring penalties. This flexibility is a key advantage, especially as Tungsten West is actively advancing toward securing a more substantial debt package.
Indeed, alongside this bridging facility, Tungsten West has completed the final stage of due diligence on a more extensive debt financing package valued at up to $85 million. The finalisation of the necessary documentation for this larger facility is currently underway. Upon its successful closure, this comprehensive debt package is intended to partially repay any funds drawn from the bridging loan, ensuring a smooth transition to long-term financing for the project's full development.
Jeff Court, CEO of Tungsten West, expressed gratitude for the timely support, stating,
“We are thankful for the support of our shareholder, who has provided the bridging loan facility on favourable terms. Over the coming weeks, we look forward to concluding our remaining debt financing package, which will allow us to maintain our rapid development pace and deliver tungsten and tin concentrate into the market from Q3 2026.”
This statement highlights the critical role of the bridging loan in maintaining the project's ambitious timeline and the anticipation surrounding the larger financing deal.
Hemerdon's Phased Operational Restart: A Detailed Timeline
The restart of the Hemerdon mine is planned as a meticulous, phased approach, designed to optimise efficiency and manage operational risks. Tungsten West remains committed to its previously announced schedule, with key operational milestones now firmly in sight:
- Q3 2026: Commencement of Fines Gravity Processing
This initial phase will see the refurbishment of the existing fines gravity circuit. To expedite operations and maximise resource utilisation, Tungsten West has entered into an agreement with Duo Operations. This third-party contractor will provide mobile crushing and washing solutions, leveraging feedstock sourced from the significant ore stockpiles left by former operators. The fines gravity circuit is projected to commence operations at an initial capacity of up to 100 tonnes per hour (tph), with its full installed capacity rated at approximately 200 tph. This early production will allow the company to generate initial revenue streams and fine-tune its processing capabilities.
- Q4 2026: Coarse Gravity Circuit Refurbishment
Following the initiation of fines processing, the focus will shift to the coarse gravity circuit. This phase will involve crucial refurbishment work and the implementation of advanced pre-concentration methods. Notably, this will include a mobile pressure jig system alongside the previously installed dense media separation system. These technologies are vital for efficiently separating tungsten and tin from coarser ore particles, contributing to higher overall recovery rates and product purity.
- Q1 2027: Full Project Commissioning and Capacity Ramp-Up
The culmination of these phased developments is set for the first quarter of 2027, with the commissioning of the full project. From this point, Hemerdon aims to achieve a robust production capacity of 500 tph throughout the year. Reaching this sustained operational throughput will position Hemerdon as a significant producer of tungsten and tin concentrates, contributing substantially to global supply chains.
Operational Readiness and Workforce Development
Beyond financial and processing plans, Tungsten West is actively building its operational readiness. A significant recruitment drive is underway, with plans to hire more than 120 new staff members by June 2026. This substantial workforce expansion is critical for managing the multi-faceted operations of a modern mining facility, encompassing everything from plant operators and maintenance crews to logistical and administrative support.
Tangible progress is also evident on the ground, with six pieces of Komatsu heavy mobile equipment already on-site and engaged in preparatory work. These machines are essential for initial earth-moving and site preparation activities. Furthermore, the first fleet of primary earth-moving equipment is anticipated to arrive in June 2026, underlining the company's commitment to a rapid and efficient restart.
Market Context: High Demand for Critical Minerals
The restart of the Hemerdon mine comes at a time of sustained high demand and strategic importance for tungsten and tin. Both metals are classified as critical minerals by various governments, including the UK, EU, and USA, due to their essential role in high-tech industries, advanced manufacturing, and defense applications. Tungsten, known for its extreme hardness and high melting point, is vital for cutting tools, surgical instruments, and aerospace components. Tin, conversely, is indispensable in electronics, solders, and various alloys.
The robust market conditions for these commodities further enhance the economic viability of the Hemerdon project. Tungsten concentrate prices have consistently remained above $3,000 per tonne unit in the European market, signalling strong underlying demand and favorable pricing for producers. This strong price environment provides a compelling backdrop for Tungsten West's production goals, directly impacting the project's revenue potential and profitability.
Offtake Discussions and Supply Chain Security
In response to these attractive market dynamics, Tungsten West is proactively engaging several parties in offtake discussions. Offtake agreements are crucial in the mining industry, providing long-term sales contracts that secure future revenue streams and often act as a prerequisite for securing project financing. These discussions reflect the prevailing market demand for high-quality tungsten and tin concentrates and signify the industry's confidence in Hemerdon's upcoming production. Securing these agreements will de-risk the project by guaranteeing buyers for its output, providing stability for future operations and investment.
From a broader industry perspective, the Hemerdon restart is particularly significant for enhancing supply chain security in Europe. With much of the world's tungsten production concentrated in a few geological regions and supply chains often facing geopolitical complexities, a domestic source like Hemerdon in the UK offers strategic benefits. It contributes to greater resilience in the supply of critical minerals, reducing reliance on potentially volatile international markets and supporting regional industrial autonomy.
Forward Momentum and Future Impact
The securing of the $25 million bridging loan represents a pivotal step for Tungsten West, demonstrating its capacity to attract vital capital and maintain its aggressive development schedule. With the phased restart plan firmly in place and operational preparations well underway, the company is poised to become a key supplier of tungsten and tin concentrates. The anticipated full project commissioning in Q1 2027, targeting 500 tph capacity, promises to deliver consistent supply into a market that keenly awaits it.
The successful finalisation of the pending $85 million debt package will be the next critical financial milestone, enabling Tungsten West to fully leverage its production potential and solidify its position in the global critical minerals landscape. The Hemerdon mine's restart is not just a corporate achievement; it represents a significant contribution to the UK's industrial base and the broader European strategy for critical raw materials, reinforcing domestic supply chains for essential components that power modern economies.
