Tungsten Mining (ASX:TGN) has acquired Western Australian tungsten assets containing 15.3 million tonnes of tungsten trioxide from Hazelwood Resources (ASX:HAZ).

GWR Group (ASX:GWR), which has a 16.4% holding in Tungsten Mining, saw its shares jump 26% today to A$0.058 on the news. 

GWR will help fund the transaction by agreeing to subscribe to a convertible note with a face value of $1 million at an interest rate of 12% per annum payable quarterly in arrears. 

Consideration for the Hazelwood properties includes $1 million in cash and the issue of 5 million Tungsten Mining shares.

Specifically the deal encompasses the sale of the Mt Mulgine and Big Hill projects, which represent potential for a vertically integrated tungsten business as supply-demand dynamics for the sector continue to tighten. 

The combined inventory of the two projects equates to 88.2 million tonnes at 0.17% WO3 for more than 15.3 million tonnes of WO3. 

 

This resource equals 121,700 tonnes of contained tungsten metal. 

This would add significantly to Tungsten Mining’s existing WA portfolio, which includes the recently enlarged Kilba resources of about 5 million tonnes at 0.24WO3 for 12,129 tonnes of WO3.  

Tungsten anomalism is widespread at Mt Mulgine (350 kilometres northeast of Perth) and the project’s exciting Mulgine Trench exploration area remains open in all directions. It is considered to have potential for increasing the overall resource. 

At Big Hill in the East Pilbara region, Hazel wood reported that pilot-scale testwork has shown excellent processing characteristics producing high-quality tungsten concentrate. 

 

Completion of the sale is expected in the coming weeks. 

 

 

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