Wolf Minerals has received government backing for its Hemerdon tungsten mine development in Devon.

As per report minister of State for Trade, Lord Green wrote to the company expressing his support, adding he hoped the company would proceed quickly with the development of the project.

The minister said Hemerdon was important both for jobs and wealth creation in the local community and also to secure supplies of tungsten to the UK and wider European Union.

Hemerdon situated about 10 miles north of Plymouth, houses the fourth largest tungsten deposit in the world and also significant quantities of tin as a by product.

A definitive feasibility study in 2010 estimated the project’s base case value at GBP 74 million based on a mine life in excess of nine years producing 350,000 metric tonnes of tungsten and 450 tonnes of tin each year.

The mine is expected to cost GBP 120 million to build. In December, Wolf arranged GBP 55 million of senior debt to fund the first portion with credit approval for these facilities expected in February.

Wolf added today it remains in discussions with potential off take partners to provide subordinated debt for the remainder of the cost, adding it wants to minimize the equity component of the funding package.

Mr Humphrey Hale CEO of Wolf said that "Support from the UK Minister of State for Trade and Investment is extremely welcome.” He added that work on the new Hemerdon link road should start this month and be completed in June this year. The road development was specified in the conditions of the main mine permit.

(Sourced from Proactive Investors)