Tip update: Tungsten West float generates cash for Hargreaves Services

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The flotation of Tungsten West (LON: TUN) is good news for Hargreaves Services (LON: HSP), which has connections with the Hemerdon mine in Devon dating back to the time it was owned by Wolf Minerals. This will generate significant revenues for Hargreaves Services.

Tungsten West bought the mine from Hargreaves Services in 2019, after the latter had taken ownership of the main assets from the administrators in lieu of the money it was owed by Wolf Minerals. This is the fourth largest tungsten resource in the world.

Tungsten West believes that it needs to invest £44.6m to improve the Hemerdon mine. This will enable it to recommence production and make it more commercial. The mine is expected to have an 18.5-year life.

The flotation triggers the £1m annual fee that was promised to Ha...

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