Photo by: Reuters
PERTH (miningweekly.com) – Tungsten developer Vital Metals' strategic partner Japan Oil, Gas and Metals National Corporation (Jogmec) has formally started a tender process to secure a long-term partner for the Watershed project, in North Queensland.
Under its investment mandate, Jogmec, which holds a 30% stake in the Watershed project, would arrange for the transfer of its interest to a Japanese company, which would participate and help fund the project’s development.
Vital MD Mark Strizek on Friday said Jogmec’s decision represented a very positive development for the Watershed project.
“This now establishes a clear and firm timeline for advancing the project, with final bids due under the tender process next month, and a final deadline for selection of the long-term partner on September 24.”
Strizek noted that Jogmec had already facilitated meetings with all of the Japanese companies that were active in the tungsten space, adding that all were companies with strong balance sheets and a corporate ethos that would fit well with Vital and its plans to become a top global tungsten producer through the development of the project.
The Watershed project was expected to produce at a rate of 2.5-million tonnes a year over an initial ten-year mine life. The project had a total resource of 49.32-million tonnes, containing about 70 400 t of tungsten.
“The countdown is now well and truly on for the financing and development of Watershed, which has the potential to be a company-maker generating very attractive returns for our shareholders and joint venture partners alike,” Strizek added.