Tungsten taps investors for $13m

Local company Tungsten Mining has kicked off a $13.5 million capital raising as it progresses development of its Mt Mulgine tungsten project in the Murchison region.

Tungsten said it would raise the funds by way of a one-for-three non-renounceable entitlement issued priced at 10 cents a share.

The proceeds from the raising will be used to fund pilot plant test work at Mt Mulgine, as well as drilling programs and certain components of a definitive feasibility study on the project.

It will also be used to both secure and meet milestone payments on long lead items for the project.

The raising follows the completion of a $600,000 acquisition of a modular heavy mineral processing plant from aspiring lithium miner Pilbara Minerals.

Tungsten announced in July that it would pay $300,000 in cash and the rest in shares to acquire the Tabba processing plant, which was built by Pilbara in 2015 and decommissioned in 2016 when the company’s focus switched to its Pilgangoora lithium operation.

“The decision to purchase the modular processing plant has allowed the company to accelerate project development activities at a time when prices have dramatically improved, whilst materially reducing the capital expenditure required to commence production,” Tungsten said in a statement today.

“Significantly, tungsten prices have substantially improved in recent months and based on prices last week, had improved by over 60 per cent compared with a year ago.”

Shares in Tungsten were 5.8 per cent lower to 16 cents each at the close of trade.