Tungsten West PLC (AIM:TUN, OTC:TNGWF) shares surged in Thursday morning's trade, rising more than 40%, after announcing a potential $95 million financing via the Export-Import Bank (EXIM) of the United States.
The company, which is developing the Hemerdon tungsten and tin mine in Devon, said it had received a non-binding letter of interest from the bank.
“The Letter of Interest from EXIM underlines Hemerdon's global critical minerals supply credentials and is reflective of its extensive potential," Tungsten West chief executive Jeff Court said.
"The project is poised to produce approximately 20% of global supply of primary tungsten from outside China, representing a strong opportunity to establish supply chain security in the many sectors that are reliant on tungsten."
The proposed financing is part of the Export-Import Bank's 'supply chain resilience initiative', which aims to secure critical mineral supply chains for US businesses.
It is expected that the financing would come with a 15-year repayment term, and it's contemplated that it would represent a significant portion of the debt required to return Hemerdon to production
Court added: "Whilst there are no assurances that this LOI will result in a financing commitment, it is a strong display of confidence in our investment case as we proceed with various funding discussions."
In London, Tungsten West shares were up 4p or 44% changing hands at 13p.