Tungsten Mining (ASX: TGN) expects a $53 million capital raising to provide it with sufficient funds to progress pre-feasibility and definitive feasibility studies for its Mt Mulgine project in Western Australia.
The heavily oversubscribed placement saw the issue of 278.9 million shares at $0.19 each, representing a 15.6% discount to the last closing price of $0.225 and a 0.1% premium to the 15-day volume weighted average price of $0.1899.
The raising positions the company to accelerate feasibility study activities including exploration aimed at expanding Mt Mulgine’s resource estimate – currently 1.9 million tonnes at 1.1 grams per tonne gold for 67,500 ounces – and progress towards a final investment decision before the end of next year.
“We believe the significant support received for our raising is an endorsement of our strategy, the quality of our project portfolio, and the growing importance of tungsten and associated critical minerals across the global economy,” chair Gary Lyons said.
Downstream Partner Discussions
Tungsten Mining has commenced discussions with potential downstream processing partners, scheduling meetings next month with prospective offtake companies including industrial businesses and strategic stakeholders across the US and Europe.
Discussions will focus on long-term supply requirements, product specifications, and alignment with secure and allied supply chains.
High-level meetings have also been held regarding potential future pathways to ammonium paratungstate production opportunities and related offtake arrangeements.
The company has engaged specialist advocacy firm Squire Patton Boggs to assist with its dealings in the US.
Vietnam Site Visits
Tungsten Mining’s senior management team and representatives from primary engineering contractor Mincore have completed a site visit to Vietnam where they toured multiple fabrication facilities and reviewed downstream processing expertise.
Mincore is a leading engineering consultant with domestic and international experience across mineral processing of tungsten and other critical minerals.
The company also conducted a comprehensive visit to one of the world’s largest integrated tungsten mining and processing operations and inspected key areas including the gravity circuit and primary milling and flotation facilities.
The visit provided the team with valuable operational insight into large-scale tungsten processing, downstream integration, and quality control systems.
