Canada’s Fireweed Metals to Buy Tungsten Project from NWT Government

The mining company Fireweed Metals Corp in Yukon, Canada. has signed a binding letter of intent to acquire a major tungsten project, the Mactung Project, from the Government of the Northwest Territories, which straddles the border between the Yukon and Northwest Territories. It was acquired by the Northwest Territories government (NWT government) in 2015 as part of the bankruptcy of North American Tungsten Corporation Limited.

A June 7 press release from the Northwest Territories government said they took over the project from the bankrupt company to protect the value of the future development. It noted that the government's goal is to return it to the private sector. "There has been a significant improvement in the price of tungsten since 2015 and Mactung owns one of the highest grade deposits in the world," the NWT government notice reads.

The Northwest Territories government announced the terms of the letter of intent - the purchase price was set at $15 million. The project is adjacent to a project already underway by Fireweed in the Selwyn Mountains, which is accessible via the North Canol Highway.

Fireweed Metals Corp. has rebranded its name two weeks after announcing the purchase of a tungsten mine, previously known as Fireweed Zinc. The company was previously known as Fireweed Zinc, and in a June 21 announcement on the company's website, Fireweed CEO Brandon Macdonald said the rebranding reflects the acquisition of the tungsten project as well as the zinc-gallium-germanium project near the Gayna River.

Ranj Pillai, Yukon Department of Economic Development, said, "The potential development of a tungsten mine in Canada on this scale is an achievement and the addition of this important suite of minerals from Fireweed Zinc has tremendous potential to enhance the economy of the Yukon and Northwest Territories."

"Tungsten is used in mining, industrial, automotive, and aerospace applications. Mineral exploration and development can help advance the clean energy transition and combat climate change. Including the Mactung tungsten project, the outlook for the development of key minerals in northern Canada is very positive. Key minerals are important resources for developing clean energy, many of which are found in the Yukon."

Mactung Project is an advanced-stage tungsten project located in Yukon and Northwest Territories. It is one of the largest tungsten deposits in the world. The property witnessed a change in ownership several times before it was acquired by the North American Tungsten in 1997. North American Tungsten released a feasibility study for the project in February 2009, based on previous drilling, engineering, metallurgy, geotechnical, and environmental baseline data.

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