Terra Uranium (ASX:T92) is diversifying its exploration strategy and geographical focus by entering into a binding term sheet to acquire privately held Dundee Resources, which owns the Glen Eden Tungsten Tin Molybdenum Project in New South Wales.
Terra Uranium has also received firm commitments to raise $865,000 by way of a placement at an issue price of $0.03 per share. Each share will include an option exercise at $0.09 and expiry being 31 December 2026.
Completion of the proposed acquisition is subject to entry by the parties into a long form share sale agreement and the receipt of any necessary regulatory or shareholder approvals. This is expected to take four to eight weeks to complete.
Speaking to Mining.com.au, Niv Dagan, who on 8 May 2025 was appointed as a non-executive director of Terra, says while uranium remains an important part of Terra’s portfolio, Glen Eden offers upside with exposure to critical minerals such as tungsten in Australia.
Dagan, who is also founder of Peak Asset Management, says the somewhat opportunistic acquisition represents Terra’s evolving exploration strategy from just uranium to other high-demand commodities in Australia.
“We were looking quietly for assets, but also got an approach (from the vendors) at the same time,” Dagan tells this news service.
Mining.com.au understands the deal is largely being driven by Peak Asset Management with no buyside or sellside advisors involved.
Dagan says Terra still retains its portfolio of assets in the Athabasca Basin “so the uranium strategy is still in play”.
“We have obviously progressed with the uranium portfolio and uranium strategy and we feel that we’re happy with the uranium strategy where it is right now with ATHA Energy Corp (TSX-V:SASK) farming into our assets,” he continues.
“But (Glen Eden) is very large and it’s been extensively drilled. We have an exploration target of over 30 million tonnes at 0.29% equivalent, which is globally significant just on tungsten itself.”
Dagan notes the price of tungsten recently surpassed US$450 per metric tonne unit (MTU) in a 12-year high. This comes amid rising demand due to China’s export restrictions.
Tungsten is one of the five refractory metals – the others being niobium, molybdenum, tantalum, and rhenium – and such metals exhibit extremely high resistance to heat and wear. It is also conductive and resists corrosion.
It is one of the toughest materials found in nature – super dense and almost impossible to melt. Tungsten has the highest melting point of all pure metals (6191.6°F or 3422 °C), lowest vapour pressure, and the highest tensile strength.
As such, tungsten has broad applications and is used across many industries including military, aerospace, and data centres.
According to Dagan, Glen Eden is one of the largest undeveloped tungsten projects in New South Wales – and possibly Australia. The project is located next to important infrastructure including roads, water, and power.
Located 50km by sealed road from the Ottery Mine (pictured below), Glen Eden’s mineralisation includes molybdenum, tungsten, tin, and bismuth in a “clearly defined multi-phase brecciated greisen and stockwork complex approximately 500m in diameter hosted in rhyolitic volcanics”.
Glen Eden is close to the developing critical minerals mines at Taronga with First Tin (AIM:1SN) and Larvotto Resources’ (ASX:LRV) Hillgrove Antimony Project.
The acquisition includes tenements Glen Eden, Bald Nob, and Deepwater tin, tungsten, molybdenum, silver, and base metals projects.
Raising capital, expanding focus
Terra Uranium has historically been a mineral exploration company strategically located in the Athabasca Basin, Canada, a renowned uranium province known for its large, high-grade deposits.
Compared to Australia, exploration in the basin is costly for a junior the size of Terra Uranium. Looking ahead, Dagan says the strategy is to not necessarily sell or divest the uranium projects but “actually find farm-in partners and joint venture partners with bigger balance sheets”.
“So in the Athabasca we needed to find a larger group with a big balance sheet to farm into the assets. And that’s key for us – it’s key for a lot of juniors out there,” he continues.
“We are getting a big boy, like ATHA Energy that farms into our projects, and we’re also looking at other commodities with very strong demand or high demand, tungsten being one of them.”
Dagan notes, however, that Canada offers a stable political environment with robust access to global markets and to date. Terra has built land tenure of over 180,000 hectares of ground and recently entered into an option and joint venture agreement with ATHA Energy over Terra’s Pasfield Lake project.
Yesterday (1 July), Tribeca Investment Partners issued to the Australian Securities Exchange (ASX) a notice ceasing to be a substantial holder in Terra Uranium.
In early June, Andrew Vigar transitioned from Executive Chairman to the role of non-executive chairman in Terra Uranium.
Vigar has been with Terra since its formation, has led the company through its 2022 IPO and on the ASX, as well the acquisition and exploration of the Athabasca Basin-based uranium and New England-based tin and silver projects.
Write to Adam Orlando at Mining.com.au
Images: Terra Uranium, Mindat & NSW Resources
