PERTH (miningweekly.com) – ASX-listed Tungsten Mining and fellow listed GWR Group have encountered difficulties with the sale of the Hatches Creek tungsten project, in the Northern Territory.
The two companies in September struck an agreement under which Tungsten Mining would acquire the project for A$8.68-million.
However, following consultation with the ASX, Tungsten Mining has now been advised that the transaction could not proceed in the way it was currently structured.
The two parties said in a joint statement on Friday that they remained committed to implementing the transaction, enabling Tungsten Mining to invest in the Hatches Creek project, and have now agreed to negotiate in good faith amendments that would see the transaction proceed.
The project consists of two granted exploration licences totalling 31.4 km2, which cover the historic Hatches Creek tungsten mining center, which previously recorded 2 840 t of tungsten between 1915 and 1957.
GWR has successfully completed reverse circulation drilling in 2016 and 2017, which confirmed multiple high-grade polymetallic tungsten targets and demonstrated the potential for a large high-grade polymetallic tungsten deposit.