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(Sharecast News) - Tungsten West announced the signing of heads of terms with engineering specialist Duo Group on Wednesday, for the construction of a new crushing, screening and ore sorting facility at its Hemerdon tungsten and tin mine in Devon, marking a further step in efforts to restart production at the site.
The AIM-traded firm said the agreement covered the engineering, procurement and construction package for the new facility, which it said is a central element of the mine's restart plan.
It said the contract remained subject to final documentation and the conclusion of project financing, which the company said was progressing.
Duo would act as EPC partner, and was set to supply processing solutions for the installation, while Metso, for whom Duo is the UK sales and servicing partner, would provide the key fixed equipment components.
The facility formed a major part of Tungsten West's redesigned processing flowsheet, intended to deliver improved operational efficiency and long-lead-time infrastructure.
Chief executive Jeff Court said the deal demonstrated momentum in the restart programme.
"This marks another important milestone in restarting Hemerdon and I am very pleased to have Duo as our partner for the project," he said.
"This works package is a major component of the re-start programme and enables us to commence targeted works on this long lead time component."
Duo's managing director Martin McWilliams said the company had collaborated with Tungsten West to develop an innovative design.
"We are pleased to be selected by Tungsten West as the EPC partner for the new build crushing, screening and ore sorter facility," he said.
"Duo has worked closely with Tungsten West on the design, developing the most innovative and sustainable facility in the UK, which places Metso's proven crushing and screening technology at the core of the process.
"Hemerdon is an important project for the UK's critical minerals sector, and we look forward to supporting Tungsten West in delivering this major component of the restart programme."
At 1307 GMT, shares in Tungsten West were down 0.8% at 11.16p.
Reporting by Josh White for Sharecast.com.