Tungsten Mining NL (ASX:TGN) is raising up to $13.5 million via a 1- for-3 non-renounceable entitlement offer at $0.10 per share to eligible shareholders.
The company is continuing to progress the development of its Mt Mulgine Tungsten Project in Western Australia.
Mt Mulgine’s resource inventory of 70.9 million tonnes containing more than 12.7 million tonnes of tungsten makes it one of the largest tungsten resource inventories held by an ASX-listed company.
The past financial year has seen development activities continue apace, with drilling and metallurgical test work programs successfully completed.
Tungsten Mining recently purchased a modular heavy mineral processing plant from Pilbara Minerals Ltd (ASX:PLS), following a continued improvement in the tungsten market.
The purchase of the modular processing plant has allowed the company to accelerate project development activities.
Significantly, tungsten prices have substantially improved in recent months and based on prices last week, had increased by over 60% compared with a year ago.
The funds raised by the entitlement offer will be used to complete pilot plant test work, geotechnical and sterilisation drilling, detailed engineering and other components of the definitive feasibility study.
Furthermore, it is anticipated that Tungsten Mining will make milestone payments on long lead items and other items of equipment and undertake preliminary earthworks and mining activities.