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A company looking to restart production of the rare metal tungsten at its mine in Devon has said it is looking to raise millions of pounds to complete the project.

Tungsten West has also announced a restructure as part of a major cost cutting strategy, as it looks to continue to re-develop the Hemerdon mine site near Plymouth. The Hemerdon deposit is estimated to be the second-largest reported tungsten reserve globally.

The AIM-listed company said it was aiming to secure between £5m and £6.95m through an interim fundraising round through a convertible loan note, and a further £2m via an open offer to existing shareholders.

The firm, which recently appointed experienced mining consultant Neil Gawthrope as its new chief executive, has launched a review of operating costs, capital expenditure, and sale of surplus assets, amid soaring energy costs.

In an update to investors, the board said it has received “substantial support from certain major shareholders”, adding that its expected minimum funding target of £5m would be reached.

Bosses added that once it raised enough cash, executive vice-chairman Mark Thompson would step down, to be replaced by “additional non-executive directors with complementary skills and experience”.

Chairman David Cather said: “The proceeds of the fundraising will increase the company's cash balance and allow it to progress necessary project workstreams whilst it continues to work towards full Project funding. However, due to the increased risk surrounding volatile energy prices and a more conservative lending approach, some tough decisions have had to be made in order to ensure deliverability.

“Over the coming months, the company will be required to implement a number of cost saving initiatives to ensure success at Hemerdon but I remain confident in the project and believe we now have the team to help it deliver its potential."