Tungsten West PLC (AIM:TUN) told investors it has now executed documentation for convertible loan notes, raising up to £6.95mln though two tranches.
The first tranche will be £3.975mln (with £2mln of which was taken up by funds managed by Lansdowne) and a further £1.975mln from other note holders – followed by the second tranche of £2.975mln (with £1mln from Lansdowne funds).
A subsequent £2mln tranche could be offered to a third party procured by Lansdowne.
At the same time, the company is launching an open offer today to raise up to £2mln from qualifying existing shareholders.
"The £6,950,000 fundraise and beginning of the open offer period marks a promising step for the company in its progress towards restarting the Hemerdon mine,” said Tungsten West chair David Cather.
“The intended use of the funds is to meet near term contractual liabilities and annual expenditure, as well as financing planning and permitting activities.
"We continue to work with stakeholders, governmental departments and organisations, and the local community to ensure funding, permitting and licensing is in place to develop Hemerdon in sustainable and cost-effective manner.
“We look forward to updating the market on the general meeting, the closing of funding, and further updates from Hemerdon in due course."