PERTH (miningweekly.com) – ASX-listed GWR Group has executed a sales agreement with unlisted Davenport Resources to acquire the Hatches Creek tungsten project, in the Northern Territory.
Under the terms of the agreement, GWR would pay A$500 000 in cash and a 1.5% net smelter royalty.
The Hatches Creek project had originally been subject to a joint venture agreement between GWR and ASX-listed Arunta Resources, and would have seen GWR earn a 50% interest in the project by sole-funding A$1.5-million in project spend.
However, in February, Arunta completed a demerger, which resulted in Davenport retaining the Hatches Creek project.
“The agreement with Davenport allows GWR to accelerate exploration on this high-grade tungsten project. The reduced cost allows us to assume complete control of the project, to develop it to our timeframe and not to be subject to joint venture pressures,” said GWR CEO Craig Ferier.
“With our recently updated vision and approach of targeting quality projects in a counter-cyclical manner, we are confident that detailed and methodical exploration of this high-grade historical mining centre will deliver results.”
The Hatches Creek project consists of two granted tenements over 31.4 km2. The project has an inferred resource of 225 000 t, grading 0.58% tungsten.
Edited by: Creamer Media Reporter
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