Wolf Minerals is doing the rounds on the east coast, talking up interest in its Hemerdon tungsten and tin project.
Hemerdon will be the first sizeable new metals mine in Britain (Devon to be precise) in more than a decade.
After hanging on through the global financial crisis, Wolf recently raised $4 million to get through a feasibility study, which it hopes to have done in the second quarter of next year -- a year later than proscribed in its pre-GFC timetable.
According to managing director Humphrey Hale (a Brit himself), Hemerdon has an NPV of $US237m, which makes Wolf’s $14m market value look a little low if you buy the story of the mine and continued tungsten demand.
With China controlling 80 per cent of global tungsten production, Wolf is expecting European companies like Stanvik and H.C. Starck to want to tie up demand from the British mine.
Perth-based Wolf is looking to finance the L64m ($11.7m) start-up cost through a mixture of debt and equity and is chasing some lift in the share price to help it get some better terms for whatever amount of equity financing it settles on.
Hemerdon has fairly moderate grades, but a low strip ratio of 1.46:1, which Wolf says should keep a lid on costs.
Source: The Australian
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