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The company is planning to issue 58.8 million shares to sophisticated and institutional investors at 34c per share, with every five shares coming with a 60c December 2019 free-attaching option.
The issue price represents a 15.7% discount to the 10-day volume-weighted average price of 40.3c.
Directors have received commitments representing about 75% of the amount sought.
The proceeds will be used to fast-track studies over the Mt Mulgine tungsten project in Western Australia, where Tungsten believes it could be in production by the end of the year.
Mt Mulgine has a resource of 70.9 million tonnes at 0.18% tungsten trioxide and 230 parts per million molybdenum.
Tungsten CEO Craig Ferrier welcomed the new shareholders to the company's register.
"The funds raised by the placement strengthen our existing cash reserves to support accelerated development at Mulgine Hill, fast-tracking an expansion case incorporating the Mulgine Trench deposit and to maximise opportunities presented in the market," he said.
Tungsten had $15.92 million cash at the end of December after raising $13.87 million via an entitlement offer at 10c per share.
Shares in Tungsten fell by over 13% this morning to 39.5c. The company has a market capitalisation of around $225 million.
