Perpetual Resources (ASX:PEC) has entered into a definitive agreement to acquire the Nevada Scheelite Mine in Nevada, US, for staged payments totalling US$3.8 million ($5.38 million) over four years.
The historic brownfield tungsten project produced 328,747 short ton units of tungsten trioxide at an average grade of approximately 1.1% tungsten trioxide between 1937 and 1957.
The acquisition covers four patented mining claims providing full private ownership of mineral and surface rights across the project’s ‘high-grade’ core area.
Executive Chairman Julian Babarczy says this will allow the ‘bypassing of usual public-land permitting bottlenecks and significantly compress future development timelines’.
“The Nevada Scheelite Mine is a transformational acquisition for Perpetual. Historic production […] exceptional drilling results […] and extensive existing mine infrastructure position Nevada Scheelite as one of the most compelling tungsten opportunities on the ASX, in our view,” Babarczy adds.
Historical drilling returned high‑grade intercepts, including 8.2m @ 2.40% tungsten trioxide from 14m, 4.0m @ 1.34% tungsten trioxide from 78m, and 16.8m @ 0.89% tungsten trioxide from 40m.
Underground face sampling on the 550 Level returned weighted average grades of 1.80% tungsten trioxide (1978) and 1.45% tungsten trioxide (1981), with verification intervals including 3.7m @ 2.26% tungsten trioxide and 1.8m @ 2.28% tungsten trioxide.
Development pathway and funding
Existing infrastructure includes a 127m vertical shaft, a 175m inclined shaft, and over 2,100m of underground workings across six levels. This substantially reduces future capital requirements, the company says.
Perpetual Resources has received firm commitments for a $2.5 million placement at $0.02 per share to fund the acquisition and exploration activities. The placement represents a discount of approximately 4.8% to the last closing price of $0.021.
The company plans to compile historical mine plans, build a 3D geological model, and conduct verification mapping and sampling to validate the data and work toward a maiden JORC-compliant mineral resource.
The acquisition includes a 2% net smelter return royalty over minerals produced from the claims. Perpetual may buy back 100% of the royalty for US$1 million within 12 months of commercial production commencement.
Write to JC Villarba at Mining.com.au
Images: Perpetual Resources
