Tungsten West PLC (AIM: TUN), the owner and operator of the Hemerdon tungsten and tin mine in Devon, has announced that the High Court of Justice of England and Wales sanctioned its proposed capital reduction on 3 November 2026. The move cancels the balance standing to the credit of the company's share premium account, following shareholder approval at the Annual General Meeting on 29 September 2026. The capital reduction is significant for investors because it formally creates the legal capacity for Tungsten West to pay dividends and make other distributions to shareholders in the future.

Key Points

  • Tungsten West PLC (AIM: TUN) operates the Hemerdon tungsten and tin mine in Devon, UK
  • The High Court of Justice of England and Wales sanctioned the cancellation of the company's share premium account on 3 November 2026
  • Shareholders approved the capital reduction via special resolution at the AGM on 29 September 2026; registration with the Registrar of Companies is expected within days
  • Investors should watch for any formal dividend or distribution announcements, noting the company provides no assurance on timing or amount

High Court Sanctions Hemerdon Mine Operator's Share Premium Cancellation

Following a confirmation hearing held on 3 November 2026, the High Court of Justice of England and Wales formally sanctioned Tungsten West's capital reduction proposal. The capital reduction involves cancelling the amount standing to the credit of the company's share premium account, a mechanism commonly used by UK-listed companies to create distributable reserves. Tungsten West, which focuses on the Hemerdon project — one of the largest tungsten deposits in the world — secured the court's approval after shareholders had already passed the necessary special resolution at the September AGM. The number of shares admitted to trading will remain unchanged by the process.

Registration With the Registrar of Companies Expected Within Days

The capital reduction will become legally effective only upon registration of the court order and accompanying statement of capital by the Registrar of Companies in England and Wales. The announcement states that this registration is expected to occur within the next few days following the 5 November 2026 disclosure. Until that registration is confirmed, the capital reduction has not yet taken full legal effect. Tungsten West's nominated adviser is Strand Hanson Limited, with joint broking support from Hannam & Partners, Investec Bank plc, and Zeus Capital Limited, reflecting the operational scale and market profile of the Hemerdon project.

Capital Reduction Creates Distributable Reserves but Offers No Dividend Guarantee

The primary stated purpose of the capital reduction is to enable Tungsten West to pay dividends and make other distributions to shareholders in the future. However, the announcement explicitly cautions that there can be no assurance the company will make any such distributions, nor any certainty regarding the timing or amount of potential returns. Investors monitoring the Devon-based mining company will note that the creation of distributable reserves is a legal prerequisite for dividends in the UK, meaning this step removes a structural barrier — but commercial and operational conditions at Hemerdon will ultimately determine whether distributions follow.