Trigg Minerals (ASX:TMG) has entered into a binding agreement with Wyoming Mines to acquire the Central Idaho Antimony (CIA) Project in the US, broadening the company’s portfolio of critical minerals in the nation.
As part of the sale and purchase agreement, Trigg will pay an aggregate of US$4.97 million ($7.53 million) in several milestone payments.
Trigg, which has a market capitalisation of $119.52 million, has also received firm commitments to raise $5 million, via the issue of 55.55 million shares to Tribeca Investment Partners, at $0.09 per share.
Funds will be used to progress the company’s near-term objectives. This includes progressing its US operations, investigating a potential US mainboard listing, and contributing towards general working capital.
Trigg has developed a systematic low-cost and high-impact exploration program aimed at progressing towards high-priority targets identified during the initial due diligence and reconnaissance stages.
The program will focus on defining the geometry, grade, and extent of the known mineralised zones to ready them for drill testing.
Managing Director Andre Booyzen says this acquisition will enhance the company’s Antimony Canyon Project in Utah and the Tennessee Mountain Tungsten Project in Nevada.
“It strengthens Trigg’s role as a leading critical minerals explorer in America by gaining a district-scale position in one of North America’s most underexplored mineral belts,” Booyzen says.
Under the deal, both companies have agreed to entitle Wyoming Mines to receive a 2.5% net smelter return royalty derived from the production of all minerals extracted from CIA.
The completion of the transaction remains subject to completing due diligence and obtaining necessary approvals.
As Mining.com.au reported, critical minerals where China has a strong stranglehold on the supply chain is forecast to continue doing well into 2030. These include antimony, gallium, germanium, magnesium, platinum, rare earths, titanium, and tungsten.
Antimony in particular is emerging – with Research Nester reporting that the market is expected to cross US$2.37 billion by 2034, growing at more than 6.5% compound annual growth rate during the forecast period.
Such is the appetite for antimony and for assets in North America, Trigg Mining, proposes changing its name to American Antimony and Tungsten to better reflect its US focus.
The CIA Project, which includes several walk-up drill targets, shares key geological similarities with Perpetua Resources’ (NYSE:PPTA) Stibnite Gold Project. Both projects are hosted in the same rock package and interpreted to be of similar age, supporting a common mineralising event.
Write to Aaliyah Rogan at Mining.com.au
Images: iStock & Trigg Minerals
