Tungsten West PLC on Wednesday said its chief financial officer will leave the company after fulfilling his notice period, while the company also seeks a permit from the UK Environment Agency for a mineral processing facility.

The mining company, which is focused on restarting production at the Hemerdon tungsten and tin mine in Devon, England, also announced plans for further cost cutting, as it drew on the second tranche of its 2023 convertible loan notes fundraise.

Tungsten West said Nigel Widdowson has stepped down as a director with immediate effect and resigned as CFO.

Widdowson will remain in his operating role as CFO for the duration of his notice period to focus on ongoing funding and project financing activities, Tungsten West said, and to ensure a smooth transition for the incoming CFO when appointed.

‘On behalf of the Board, I would like to thank Nigel for his outstanding work over the last two years, guiding us through the [initial public offering] and subsequent restructuring and refinancing processes, and supporting the team as we continue towards the recommencement of operations at Hemerdon,’ said Chair David Cather.

Chief Executive Officer Neil Gawthorpe added: ‘Whilst we are disappointed to be losing someone with Nigel’s capabilities and experience, we are pleased that he has agreed to remain fully engaged to assist in the company’s permitting and funding activities during this transitional period.’

Tungsten West said it had now made a formal submission to the UK Environment Agency to secure a mineral processing facility permit, alongside a section 73 application to vary the tonnage cap on truck movements from the site.

It said these recent advances were ‘positive steps towards recommencement of tungsten and tin production at Hemerdon and further updates will be made as and when appropriate’.

‘The positive completion of the [low-frequency noise] trials mark an important and necessary step for the Company, enabling submission of the MPF permit application, the final permit required to switch on the plant and begin producing tungsten and tin. The LFN trials have been a key focus for Tungsten West in resolving issues experienced by the previous operator and have been beneficial to helping improve community confidence in Tungsten West and our long-term plans for the project,’ said CEO Gawthorpe.

‘Submission of the MPF permit application and the section 73 application brings us one step closer as we continue to focus our efforts on bringing Hemerdon back into production. We are proud of the progress made thus far, which is a result of community consultation and positive working relationships with the Environment Agency and Devon County Council.’

Tungsten West also said it has fulfilled the conditions necessary to draw the second trance of up to just under £3.0 million of its 2023 convertible loan notes, which were announced in mid-May. The wider fundraise was made up of two tranches totalling just under £7.0 million.

The company said it has initiated a further evaluation of the financing structure of the company, ‘whereby spending priority has been given to activities relating to planning and permitting, environmental compliance and funding, as these are essential to the continued progress of the project’. This follows the April announcement of restructuring and a cost reduction programme.

Tungsten West said, in order to prioritise these activities, a proposed cost reduction programme will need to be implemented, including a further approximate 25% reduction in staff costs via redundancies, reduced hours and resignations.

It has initiated a consultation process with staff on this and expects to announce the results of this in September.

‘Although the further evaluation of the financing structure of the business has led to some difficult decisions for the Board, the cost savings this will generate, combined with the funds received from the tranche B Notes, will provide crucial funding for planning and permitting activities, and enable us to ensure continued environmental compliance, which are vital steps towards restarting the Hemerdon mine,’ said CEO Gawthorpe.

Shares in Tungsten West were up 10% to 4.00 pence each in London on Wednesday morning.

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