PERTH (miningweekly.com) – ASX-listed Vital Metals has signed a formal sales agreement for its Watershed tungsten project, in North Queensland, with fellow listed Tungsten Mining.
The two companies in May this year struck a A$15-milion cash deal, that will see Tungsten Mining take control of the asset.
Completion of the transaction is now expected on August 9.
A recent independent review of the Watershed project estimated that it will require a capital investment of A$105.8-million to develop a 2.5-million-tonne-a-year operation, with a mine life of ten years. The project is estimated to have a post-tax net present value of A$150-million and an internal rate of return of 32%.
The project is development ready, with granted mining leases and an environmental authority for an openpit development.
Tungsten Mining said on Friday that the project will add substantially to the company’s global resource inventory, which upon completion of the transaction will stand at 176.9-million tonnes, at an average grade of 0.14% tungsten, and contain some 25.5-million tonnes of tungsten.