Tungsten Mining plans to raise around $20 million to accelerate development of the Mt Mulgine tungsten project in the Murchison region of Western Australia.
The company, which also completed a raising of close to $14 million last December, has agreed to the terms for the placement with sophisticated and institutional investors. It has received firm commitments for about 75 per cent of the raising.
Tungsten will issue almost 59 million shares at 34 cents each to secure the funding, which will be used to advance development activities at Mt Mulgine, in particular studies on large-scale mining and processing operations. The funding will also be used for acquisitions and general working capital.
Craig Ferrier, Tungsten Mining chief executive, said the company was delighted to welcome new shareholders.
“The funds raised by the placement strengthen our existing significant cash reserves to support accelerated development at Mulgine Hill, fast tracking an expansion case incorporating the Mulgine Trench deposit and to maximise opportunities presented in the market,” Ferrier said.
The company has a staged approach planned for the development of Mt Mulgine. This strategy will initially focus on a low capital start-up from Mulgine Hill to demonstrate a pathway to positive cash flow and the basis for large-scale mining and processing operations at Mulgine Trench.