Blaze Minerals (ASX:BLZ) has entered a binding agreement to acquire up to 90% of two Ugandan tungsten projects containing several historical ‘high-grade’ mines.
The company is set to acquire the Bahati and Buyaga projects, which include the former Bahati, Nyanga, Bulunga, and Buyaga mines. The Bahati mine historically produced approximately 270 tonnes of wolfram grading between 1.00–2.20% tungsten trioxide (WO3) between 1951 and 1962.
Due diligence sampling at Bahati returned results including channel samples of 1m @ 20.78% WO3 and 0.8m @ 20.22% WO3. Additional intercepts included 2m @ 3.03% WO3, 1m @ 6.79% WO3, and 1m @ 2.27% WO3, with a grab sample returning 56.23% WO3.
The projects sit within Uganda’s Karagwe-Ankole Belt, a region hosting several large deposits including Rwanda’s Nyakabingo Project, which supplies up to 20% of primary tungsten concentrate consumption in the US.
Executive Director Mathew Walker says the acquisition provides direct exposure to an ‘advanced’ exploration opportunity in a stable mining jurisdiction.
“This is a transformational acquisition for the company,” Walker says.
“Tungsten is amid a record price environment, and the company is well positioned to benefit from any exploration success.”
The 43km2 Bahati Project encompasses three historical mines with two interpreted mineralised corridors across strike lengths of approximately 600m that remain open in both directions.
Meanwhile, the 250km2 Buyaga Project surrounds the historical Buyaga mine, which produced approximately 49 tonnes of wolfram concentrate between 1969 and 1974.
Blaze intends to conduct field activities including high-resolution drone imagery, light detection and ranging (LiDAR) scanning of underground workings, detailed mapping, rock chip sampling, trenching, and 3D modelling to design a drilling campaign.
The acquisition occurs in three stages, with Blaze paying US$125,000 ($174,402) for an initial 80% interest, US$500,000 for an additional 10% within 12 months, and US$1 million for the remaining 10% within 24 months. Completion, expected in October 2026, is subject to due diligence satisfaction within 90 days.
Blaze has already raised $2.25 million from a placement of 4.5 billion shares at $0.0005 each. The first tranche of 381.25 million shares will be issued under existing placement capacity, with settlement expected on 9 September 2026. The remaining 4.12 billion shares are subject to shareholder approval.
The company has proposed a 20:1 capital consolidation at the meeting, seeking approval for the second placement tranche. Blaze says funds aim to support acquisition payments, exploration costs, placement costs, and general working capital.
Blaze Minerals is an explorer focused on high-margin, high-value ore deposits in highly prospective regions.
Write to Paula Fabe at Mining.com.au
Images: Blaze Minerals
