LONDON (ShareCast) - (Sharecast News) - Tungsten West said in an update on Thursday that it has received a non-binding letter of interest from the Export-Import Bank of the United States (EXIM) outlining potential financing support of up to $95m for its Hemerdon tungsten and tin project in Devon.
The AIM-traded firm said the funding would fall under EXIM's new Supply Chain Resilience Initiative, which aimed to secure critical mineral supplies for US industries, and could provide a loan with a maximum 15-year repayment term.

It said the package would form a major part of the debt financing required to restart production at Hemerdon, with potential support also linked to EXIM's China and Transformational Exports Program to counter Chinese dominance in critical minerals.

"The letter of interest from EXIM underlines Hemerdon's global critical minerals supply credentials and is reflective of its extensive potential," said chief executive Jeff Court.

"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."

Tungsten West cautioned that the letter did not represent a financing commitment but signalled strong interest in the project as funding discussions continue.

At 1321 BST, shares in Tungsten West were up 31.67% at 11.85p.

Reporting by Josh White for Sharecast.com.

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