Australian resources company Tungsten Mining (TGN) announced that it has agreed to acquire the Australian tungsten exploration assets of Hazelwood Resources for a cash consideration of $1,000,000 and the allotment of 5,000,000 fully paid ordinary shares in the Company.
Hazelwood Resources’ tungsten assets comprise of the 100%-owned Big Hill project located in the East Pilbara of WA and the Mount Mulgine project located 350 kilometres NNE of Pert, WA.
Tungsten Mining said the Mt Mulgine and Big Hill Projects together represent a tungsten resource inventory of 88.2 million tonnes at 0.17% tungsten trioxide (WO3) representing more than 15 million metric tonne units of WO3 based on a 0.10 WO3 cut-off grade.
“The acquisition represents a significant milestone in the relatively brief history of Tungsten Mining NL,” said TGN’s CEO Craig Ferrier.
“The acquisition, achieved at a low point in the commodity cycle, provides substantial upside and the platform upon which to build a business of scale and become a significant player within the tungsten industry.”
The company said that funding for settlement of the transaction has been provided by associated entity, GWR Group, which has a substantial shareholding (16.4%) in TGN and agreed to assist by offering to fund the cash requirement of the purchase consideration.
TGN said it will repay the loan in one of the following manners:
- Out of proceeds of any future entitlements issued by TGN to the extent of GWR’s subscription to the entitlements issue;
- By GWR subscribing to Convertible Notes in TGN subject to TGN shareholder approval; or
- In cash for any amount remaining outstanding on the maturity Date (11 December 2016).
