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- Leading global investment banking and capital markets firm Jefferies appointed as financial advisor
- Providing advice on potential strategic investors for Watershed tungsten project
- Establishes dedicated strategic workstream alongside debt financing process
- Multiple funding pathways being progressed in parallel
Tungsten Mining (ASX: TGN) has appointed highly-regarded global investment banking and capital markets firm Jefferies as financial advisor to support the Watershed tungsten project in Far North Queensland.
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Jefferies Australia will provide strategic advice in relation to potential strategic investors for the planned development of Watershed and comes after TGN’s appointment of Cutfield Freeman & Co as debt advisor in late August
These appointments follow completion of the project’s Preliminary Economic Evaluation (PEE), which demonstrated a pre-tax NPV8 of $1.3 billion, pre-tax IRR of 198% and nine-month payback, based on the assumptions in the study.
“The appointment of Jefferies adds another important element to the funding strategy we are putting in place for Watershed,” chairman, Gary Lyons, said.
“We have been clear that our objective is to establish the optimum capital structure for the project rather than pursue any single source of funding.
“With Cutfield Freeman progressing the debt workstream, Jefferies will bring global reach and strategic advisory capability as we evaluate potential strategic investors and the right funding mix for Watershed. “Importantly, this work is occurring in parallel with the drilling, engineering and pre-FID development activities already underway as we continue to advance the project toward FID and potential production.”
Jefferies has been engaged to assist Tungsten Mining in identifying, evaluating and engaging with potential strategic investors, and to provide advice in relation to the structure and execution of any strategic investment process that may be pursued.
The strategic investor workstream will run in parallel with the debt funding process led by Cutfield Freeman, which is assessing a range of potential debt sources for Watershed.
The company will continue to assess strategic investment alongside offtake-linked funding, government support and potential commercial partnerships, with the objective of retaining flexibility across funding sources and delivering an optimised funding package for the potential execution of the project.
TGN released an updated mineral resource estimate (MRE) and PEE for Watershed on mid-June of 69.7 million tonnes (Mt) at 0.11% tungsten trioxide (WO3), while the PEE outlined a potential eight-year mining operation feeding a processing facility that may continue operating beyond the initial mining period.
TGN was steady at 30.0¢ with a Mkt cap of $418.9M prior to markets opening.
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