Tungsten Mining NL’s (TGN) entry into a sale agreement will see it progress towards complete ownership of the Hatches Creek Tungsten Project.
The agreement has been executed with the company’s joint venture partner, GWR Group, to acquire GWR Group’s remaining 80 per cent interest in the project.
The project area is located 325km north-east of Alice Springs and 160km south-east of Tennant Creek in the Northern Territory. The Hatches Creek Tungsten Project has confirmed multiple high-grade polymetallic tungsten prospects and demonstrated potential for a high-grade tungsten deposit. The area has been largely unexplored and there is significant opportunity to expand the resource.
As consideration TGN has agreed to issue the GWR Group 107.5m fully paid ordinary shares in TGN, each at a deemed issue price of $0.08 per share. The issue will result in GWR’s voting power in TGN increasing to approximately 19.86 per cent. TGN will issue the shares under its placement capacity without shareholder approval.
The agreement is subject to Ministerial consent under the Mineral Titles Act 2010 (NT).
Tungsten Mining’s chair, Gary Lyons, said, “We are pleased to have agreed on an arrangement with GWR Group to accelerate TGN’s path to full ownership of the Hatches Creek Tungsten Project as we kick off the first drilling campaign.
“We thank GWR Group for being a great partner to date and look forward to driving this exciting project forward from here with GWR Group as a supportive shareholder of TGN.”
Featured image: Cartela/shutterstock.com
