Rafaella Resources Acquires More Tungsten Projects in Portugal

ASX-listed exploration company Rafaella Resources has entered into an agreement with PanEx Resources to acquire the Borralha and Vila Verde tungsten projects in Portugal. Rafaella will acquire from PanEx Resources the rights to Pan Iberia, where PanEx Resources, through its subsidiary PanMetals Unipessoal, has 100% of the rights to acquire the Borralha project and 90% of the Vila Verde project.

The two projects are 210 and 250 kilometers from Rafaella's own Santa Comba tungsten project, respectively, and both have a long mining history. "This is an important acquisition for the company as we position ourselves to be the leading tungsten supplier in Western Europe, a key metal that faces significant supply chain risk due to the dominance of Chinese supply," said Rafaella director Steven Turner.

The Borralha and Vila Verde deposits are the most attractive undeveloped tungsten projects in Portugal. The addition of these Portuguese projects provides Rafaella with a portfolio of resources at various stages of the development cycle as Santa Comba is undergoing a feasibility study and will submit an application for an open pit mining license in 2022. A 25-year mining license was recently granted to Borralha.

Steven Turner said, "Rafaella will be able to apply many of its discoveries at Santa Comba to the Borralha and Vila Verde development projects. We look forward to communicating to the market the results of our due diligence and the results of our preliminary mineral resource estimate in compliance with the Joint Ore Reserve Code (Jorc)."

Under the terms of the agreement, Rafaella Resources will acquire the tungsten projects for a total consideration of €4 million, based on a minimum resource of 25,000 tonnes of tungsten at a minimum grade of 0.14% at Borralha's Jorc property. If the resource estimate is lower than the target, the consideration will be adjusted on a pro-rata basis, with a minimum payment of €2 million.

The consideration is payable in cash and shares, with the first tranche of €1 million to be paid in cash and the balance in Rafael shares. The execution of the definitive agreement is subject to the completion of due diligence and the obtaining of the necessary third party approvals. The execution of the definitive transaction is expected to be completed by the end of January next year.

Rafaella Resources Limited is a global developer and explorer of world class mineral deposits considered critical to an ever increasing technologically driven world economy.

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