Tungsten Mining (ASX:TGN) received non-binding indicative debt terms from a number of financiers to help advance its Watershed tungsten project in Queensland, according to a Tuesday filing with the Australian bourse.

Most of the proposals support up to 70% gearing for the project's pre-production capital cost of AU$274 million, equating to roughly AU$200 million of potential debt funding, per the filing.

The company said its debt adviser, Cutfield Freeman & Co, and financial adviser Jefferies are progressing complementary debt and strategic investment workstreams to determine the best funding mix for the project.

One of the proposals received includes the issue of equity-linked securities over Tungsten Mining shares to the lender as part of the financing package, the company said, adding that any committed funding deal would be subject to conditions including board approval.

Tungsten Mining is deliberately sequencing Watershed ahead of its Mt Mulgine critical minerals project in Western Australia, with future Watershed cash flow and operating performance planned to support the subsequent funding and development of Mt Mulgine.