Tungsten Mining has signed an agreement to purchase GWR Group’s Hatches Creek tungsten project, located 375km north-east of Alice Springs in the Northern Territory of Australia.
The transaction is valued at A$8.68m ($6.25m) and will be implemented through the acquisition of GWR’s wholly-owned subsidiary NT Tungsten, which holds a 100% interest in the Hatches Creek project.
The project comprises two granted exploration licences, EL22912 and EL23462, totalling an aggregate area of 31.4km².
According to Tungsten Mining, the licences cover the entire historic Hatches Creek tungsten mining centre, which had historical production of about 2,840t of 65% WO3.
Tungsten Mining CEO Craig Ferrier said: “We are delighted to have agreed terms for the purchase of the Hatches Creek Project, a historic tungsten mine with significant exploration upside.
“Tungsten Mining has a stated objective of becoming a globally significant player in the tungsten industry.
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“This acquisition together with the recent acquisition of the Watershed Project in Queensland and our Mt Mulgine development in Western Australia provide an exciting portfolio of tungsten assets to deliver our strategic objective.”
Based on RC drilling programmes completed by GWR in 2016 and 2017, the project hosts multiple high-grade polymetallic tungsten prospects and potential for a large high-grade polymetallic tungsten deposit.
The decision to sell the project comes after GWR carried out a review of its project portfolio.
The proceeds from the transaction will allow the company to continue to focus on its Wiluna West gold project.
Upon closure of the deal, GWR will continue to have exposure to the Hatches Creek project through a 9.73% shareholding in Tungsten Mining.
Completion of the transaction is subject to certain conditions, including shareholder approval and regulatory approvals.