23 Nov Rafaella Resources to gain Portuguese tungsten projects with Pan Iberia acquisition
ASX-listed explorer Rafaella Resources has executed a binding heads of agreement with PanEx Resources for the acquisition of Pan Iberia – an outfit which owns the rights to acquire two tungsten projects in Portugal.
The A$6.21 million deal is subject to Rafaella completing legal, technical and commercial due diligence. It is expected to be executed by January 31 2022, following publication of a JORC compliant mineral resource estimate (MRE) for both projects.
The Borralha and Vila Verde projects lie 210 km and 250 km respectively from Rafaella’s Santa Comba tungsten and tin project in Spain. Both have been subject to historical mining with work dating back to the early 20th century.
Borralha already has an independent JORC 2012 mineral MRE of at least 25,000 tonnes of tungsten trioxide at a minimum grade of 0.14%. However, if the MRE is less than the target milestone, an adjustment will be made to the consideration, subject to a minimum payment of $3.1 million upon completion.
Rafaella’s managing director Steven Turner said: “This is an important acquisition for the company as we position ourselves to become a leading Western European supplier of tungsten, a critical metal facing significant supply chain risks due to the dominance of supply from China.
“Rafaella will be able to apply many of its findings at Santa Comba to the Borraha and Vila Verde development programmes. We look forward to updating the market on the outcome of the due diligence and the results of the maiden JORC MRE.”