Tungsten West plc plans to reduce “staff costs” by a further 25% at Hemerdon mine to give priority to planning, permitting, environmental compliance and funding for the project.
CREDITORS
Chief executive Neil Gawthorpe said that the move to save costs had followed “some difficult decisions”.
The reductions will be in the form of redundancies, reduced hours and resignations following the start of a “collective consultation process” with results due in September 2023.
The company is also agreeing deferred payment plans and restructuring supply agreements with “a number of creditors”.
LOAN NOTES
The news comes as Tungsten West announced it had fulfilled the conditions precedent to draw the second tranche of up to £2.975 million of the convertible loan notes (CLNs) reported in May.
Shareholder Lansdowne had confirmed that Tungsten West had made “satisfactory progress in permitting, funding and governance arrangements and has fulfilled the necessary conditions precedent to draw the Tranche B Notes”.
The company expects to issue a further £2.975 million of loan notes on or around 17 August 2023.
Mt Gawthorpe added: “We will continue to work with all stakeholders, including governmental departments and organisations, and the local community, to ensure all funding and permitting requirements are in place to recommence the production of tungsten and tin at Hemerdon as soon as practicable.”