The project would see the already popular tourist attraction able to run with paying passengers on board trains.
While the running of Tanat Valley Light Railway is a constant job, the next big project the staff are working on is a fundraising push so they can carry paying passengers the whole length of the one-and-a-half-mile long working track.
"To do that we need what's called a Transport and Works Act order," project manager Adrian Semmence explained.
"It's a legal requirement that we have that in place. We have been running a fundraiser and have reached about £13,000."
A grand total of £100,000 will be needed to put everything in place to turn the already popular family attraction into a working one, but the process can begin in earnest when the £25,000 is hit. That is expected to begin next year.
The second stage of the whole process will be to develop infrastructure at Llanddu and restore the top section of the line.
Tanat Valley Light Railway recently celebrated the completion of restoration works to an area of sidings near the platform, and welcomed two new diesel engines.
Concrete sleepers from West Somerset Railway were used as part of the restoration work, which means that another good portion of siding can be used by the railway.