Tungsten Mining (ASX:TGN) has agreed to move to 100% ownership of the Hatches Creek Tungsten Project, following entering into a sale agreement with GWR Group (ASX:GWR).
The Hatches Creek Project lies 325km northeast of Alice Springs in the Northern Territory. The project has potential for a tungsten deposit and has confirmed multiple polymetallic and tungsten prospects.
In 2019, Tungsten Mining acquired an initial 20% interest in the project. Since entering into the farm-in, Tungsten Mining has been sole funding project activities.
Under the latest agreement, GWR will sell its right, title, and 80% interest in Hatches Creek, for a consideration of 107.5 million shares in Tungsten Mining at $0.08. This will give GWR 19.86% voting power in Tungsten Mining.
As a result of this latest agreement, the farm-in agreement has been terminated.
Tungsten Mining, which has a market capitalisation of $37.74 million, says completion is expected to occur three days after satisfying certain conditions.
Chairman Gary Lyons says they are pleased to have come to an agreement with GWR “to accelerate TGN’s path to full ownership” as the first drilling campaign kicks off.
“We thank GWR Group for being a great partner to date and look forward to driving this exciting project forward from here with GWR Group as a supportive shareholder of TGN,” Lyons says.
GWR Group is an Australian iron ore producer focused on strategic minerals and advanced gold exploration.
Tungsten Mining is an Australian tungsten developer that has established a global tungsten resource inventory in its portfolio of advanced mineral projects.
Write to Aaliyah Rogan at Mining.com.au
Images: Tungsten Mining
