Deal structure and government backing
Tungsten West has agreed terms with the UK's National Wealth Fund (NWF) for a proposed investment of up to £71 million, completing the financing package to restart full production at the Hemerdon tungsten and tin mine in Devon. The NWF, a wholly owned entity of the UK Government, will provide a £36 million equity investment through the subscription of 100 million new ordinary shares at 36 pence each, giving it roughly 7.42% of voting rights in the enlarged share capital, plus a debt financing facility of up to £25 million with a non-committed £10 million accordion facility. Proceeds will fund the restart of Hemerdon and repay a short-term loan facility that Tungsten West announced on 21 May 2026.
Strategic offtake rights and board changes
As part of the transaction, the UK Government has been granted a limited period to negotiate an offtake agreement covering up to 50% of Hemerdon's 2025 Feasibility Study tungsten production, securing government access to a significant share of output. NWF and Tungsten West have also entered a shareholder relationship agreement giving the fund the right to nominate one non-executive Director and a board observer until the appointment is made, with the director to be announced in due course.
Production timeline and operational status
Tungsten West has already produced tungsten and tin concentrate at Hemerdon during the previous month as part of its restart program and is conducting final completion testing in preparation for production to begin within the third quarter of 2026. The company said it is well advanced in offtake negotiations with a major downstream tungsten refiner.
Industrial and economic significance
Chancellor of the Exchequer John Healey described the investment as backing British industry in "a more dangerous world," tapping "one of the largest deposits of tungsten in the world, right here in the UK" and supplying "vital minerals to British defence, energy and aerospace businesses." Tungsten West said the restart will create 350 direct jobs and support a further 2,400 jobs across the wider South West England supply chain, while establishing a secure domestic source of a critical mineral used in manufacturing, high-technology supply chains, aerospace, next-generation energy and defense programs.
Next milestone
Tungsten West is preparing to commence full production at Hemerdon within Q3 2026, with the NWF's equity subscription conditional on admission and a limited-period UK Government offtake negotiation set to follow.
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