Tungsten Mining is raising up to $13.5 million to advance development of the Mt Mulgine tungsten project in Western Australia.
The company plans to raise the funds through a 1-for-3 non-renounceable entitlement issue to eligible shareholders at 10 cents a share.
Funds raised through the offer will be used to complete pilot plant test work, geotechnical and sterilisation drilling, detailed engineering and other parts of the Mt Mulgine definitive feasibility study.
In the 2017 financial year, Tungsten continued development of the Mt Mulgine prospect, completing drilling and metallurgical test work at the site.
It also advanced mining studies, environmental surveys and referrals, research and development on oxide material, and a range of other technical and commercial activities.
The company recently purchased a modular heavy mineral processing plant from lithium developer, Pilbara Minerals.
“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 an ASX announcement.
Tungsten prices have improved by over 60 per cent compared with a year ago, the company added.