Tungsten West PLC - mining company focussed on restarting production at Hemerdon - Raises a total of up to £7.0 million from convertible loan notes, at 20% interest. Consists of two tranches of £4.0 million and £3.0 million respectively. Says the notes convertible into shares are at the lesser of 3 pence per share, or a 50% price of an equity raise. Additionally, launches an open offer of shares to raise up to £2.0 million through at 3p eac. Says after the open offer, up to 66.7 million shares will be offered on basis of 1 new share offered for each 2.7 shares held.
Chair David Cather says: ‘The £7.0 million fundraise and beginning of the Open Offer period marks a promising step for the company in its progress towards restarting the Hemerdon mine. The intended use of the funds is to meet near term contractual liabilities and annual expenditure, as well as financing planning and permitting activities.’
Current stock price: 3.70 pence each, down 7.5% on Friday morning in London
12-month change: down 88%
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