Tungsten raises $47m

Tungsten Mining has announced a $47 million capital raising to progress studies at its Mt Mulgine project in the Murchison region in Western Australia.

The company has issued 138 million shares at 34 cents each, with support from sophisticated and institutional investors.

The placement will also include one free attaching option for every five new shares purchased.

The placement will be completed in two tranches, with the first comprising 63 million shares, and the balance set to be issued subject to shareholder approval.

“Funds raised by the first tranche will be used to advance development activities at the company’s Mt Mulgine tungsten project, in particular to advance studies related to large scale mining and processing operations at Mt Mulgine, and for general working capital purposes,” the company said in a statement to the ASX.

“The additional funds will allow the company, subject to receiving shareholder approval, to accelerate concurrent work at Mt Mulgine; to deploy additional resources; to complete the recent agreement to acquire the Watershed tungsten project and to take advantage of other acquisition opportunities as they arise.”

The company recently acquired the Watershed tungsten project in Queensland for $15 million and also raised $20 million last month.

Shares in Tungsten were off 1.9 per cent at 75 cents each.