PERTH (miningweekly.com) – ASX-listed Tungsten Mining will raise some A$13.5-million through a nonrenounceable entitlement offer, to complete pilot plant testwork at its Mt Mulgine tungsten project, in Western Australia
The one-for-three nonrenounceable entitlement issue will be priced at 10c a share, with some 135-million shares on offer.
Tungsten Mining said on Monday that the funds raised by the offer would also go towards geotechnical and sterilisation drilling, as well as detailed engineering and other components of the definitive feasibility work for the Mt Mulgine project.
The funds would also be used to secure and meet milestone payments on long-lead items and other equipment, as well as to undertake preliminary earthworks and mining activities, and for general working capital.
Tungsten Mining was granted environmental approval for its Mt Mulgine project in August, with the company hoping to start tungsten concentrate production in 2018.
Earlier this year, Tungsten Mining paid A$600 000 for a “near-new” processing plant from Pilbara Minerals. The plant was decommissioned when Pilbara suspended the Tabba tantalum project. The plant has a nameplate capacity of 30 t/h with upside to increase throughput through optimisation of the existing plant or addition of modules.
Tungsten Mining said on Monday that the decision to purchase the modular processing plant has allowed the company to accelerate project development activities, at a time when tungsten prices have improved, while materially reducing the capital expenditure required to start production.