Tungsten Mining’s Capital Raise Highlights Risks in Critical Minerals Race

Capital Raise to Accelerate Project Development

Tungsten Mining NL (ASX – TGN) has announced a successful capital raising of $9.5 million through a single tranche share placement. The raise, priced at $0.067 per share, represents a notable 24% discount to the 15-day volume weighted average price, reflecting a strategic move to secure committed funding swiftly. This injection of capital is set to underpin the company’s ongoing development of the Mt Mulgine Project, a significant gold-tungsten resource in Australia.

Backing from Existing and Sophisticated Investors

The placement attracted strong support from both existing shareholders and professional investors, underscoring confidence in Tungsten Mining’s strategy and asset quality. The company fully utilised its placement capacity under ASX Listing Rules, allowing the issue of over 141 million new shares without requiring shareholder approval. This approach highlights the urgency and importance of advancing Mt Mulgine’s development without delay.

Focused Use of Funds

Proceeds from the placement will be directed towards critical next steps in project advancement, including oxide gold and tungsten metallurgical testwork, engineering and project development activities, resource modelling, and mine planning. These activities are essential to refining the project’s economic potential and preparing for eventual production. Additionally, funds will support general working capital and cover costs associated with the placement.

Strategic Importance of Mt Mulgine

Mt Mulgine stands as one of the largest tungsten deposits outside China, a country that dominates global tungsten supply. Tungsten’s unique properties, such as its extremely high melting point and strategic industrial applications, make it a critical mineral for sectors ranging from aerospace to electronics. Tungsten Mining’s advancement of this project aligns with broader efforts to secure sustainable and diversified sources of critical minerals within Australia.

Looking Ahead

With the capital raise complete, Tungsten Mining is well-positioned to accelerate its development timeline. The company anticipates settlement of the new shares by early October, with trading to resume shortly thereafter. This funding milestone marks a pivotal step in transforming Mt Mulgine from a promising resource into a significant supplier in the global tungsten market.