2nd Dec 2019 12:25
(Alliance News) - Hargreaves Services PLC has sold the Hemerdon tungsten mine in Devon, it said Monday, though it will continue to work on the site.
In October 2018, the previous owned of Hemerdon, Wolf Minerals UK Ltd, ceased trading, and since then Hargreaves subsidiary Drakelands Restoration Ltd has been safeguarding and maintaining the site.
Drakelands Restoration and the Hemerdon mine has now been sold to Tungsten West Ltd for GBP2.8 million in cash, the industrial services company said, with Tungsten West now taking control of the mine.
At the same time, Hargreaves has signed a decade-long mining services contract to carry out similar services it provided for Wolf Minerals when it owned Hemerdon. Hargreaves will receive GBP1 million per year for eight years.
Hargreaves Chief Executive Gordon Banham said: "We have worked closely over the last year with the many stakeholders of the former tungsten mine at Hemerdon.
"We are pleased to have achieved a solution that creates the opportunity for future tungsten production at the mine with associated local employment and provides our shareholders with substantial medium term earnings potential."
Shares in Esh Winning, Durham-based Hargreaves were 6.3% higher on Monday at midday in London at 299.83 pence each.
By George Collard; [email protected]
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