Industrial services group Hargreaves Services is set for a £10 million cash injection from mining firm Tungsten West, following a successful fundraising round and a major revision to their existing agreements.
The Durham-based company confirmed the payment stems from two linked financial moves. First, Tungsten West will immediately pay the £3 million outstanding from an earlier acquisition deal. Second, it has moved to terminate a long-term Mining Services Contract with Hargreaves, triggering a £7 million compensation fee due by May 2027.
Unwinding a historic deal
The relationship between the two firms dates to 2019, when Hargreaves sold the Hemerdon tungsten and tin mine near Plymouth to Tungsten West for £2.8 million. That transaction came after the site’s former operator, Australian firm Wolf Minerals, collapsed. The 2019 sale included a deferred consideration clause, requiring Tungsten West to pay Hargreaves a further £8 million in annual instalments of £1 million, secured against the mineral lease.
To date, Hargreaves has received £5 million of that sum. The recent fundraising by Tungsten West has allowed it to accelerate the repayment of the remaining £3 million to secure full release of the lease security.
Why the contract was terminated
The more significant element, however, is the mutually agreed termination of the 10-year Mining Services Contract that was part of the original sale. According to Hargreaves, the decision provides material benefits for both parties. For Tungsten West, which is now in the final stages of securing a debt package of up to $85 million, the move appears to be about securing full operational control as it pushes to reactivate the mine.
The company is targeting first-phase production by the third quarter of 2026, with full commissioning of new crushing, screening and ore sorting facilities slated for the first quarter of 2027. CEO Jeff Court stated the firm is “rapidly bringing Hemerdon back into production to address the ever-increasing supply gap for strategic tungsten concentrate.” Terminating the services contract likely streamlines this complex reactivation process.
For Hargreaves, the termination crystallises a guaranteed cash sum. Simon Hicks, chief operating officer of Hargreaves Services plc, said the move results in “a material cash inflow to the group effectively representing the acceleration and de-risking of several years of trading activity.”
Future opportunities and group performance
Despite the contract ending, Hargreaves indicated that discussions with Tungsten West about future opportunities to support the Hemerdon project are ongoing. The company described the mine as a “strategic asset” for the UK.
Separately, Hargreaves told shareholders it remains on track to meet market expectations for its current financial year, ending in May 2026, with projected revenue of £286.7 million and underlying profit before tax of £30.4 million. This follows a recent £6.8 million deal to sell a second portion of its renewable energy land portfolio to real estate investor Meadow Partners.
