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Rafaella Resources makes strategic tungsten acquisition

Published by , Editor
Global Mining Review,

Rafaella Resources Ltd has executed a binding heads of agreement (HoA) with PanEx Resources Ltd for the acquisition of Pan Iberia Ltd.

Pan Iberia, through its 100% subsidiary, PanMetals Unipessoal Limitada holds the contractual rights to acquire 100% of the Borralha tungsten project and 90% of the Vila Verde tungsten project from Minerália – Minas, Geotecnia e Construcoes, LDA.

Investment highlights

  • Rafaella has signed a binding heads of agreement to acquire Pan Iberia, the owner of options over the Borralha and Vila Verde tungsten projects in northern Portugal.
  • Tungsten is classified as a critical metal by the European Commission, the US and Australia, with benchmark prices having risen 50% over the last 12 months.
  • Borralha and Vila Verde Tungsten projects lie 210 km and 250 km respectively from the company’s Santa Comba tungsten and tin project in NW Spain and are located in the same metamorphic belt. Both have long mining histories dating back to the early 20th century.
  • Acquisition is highly complementary to the Santa Comba tungsten and tin project, significantly strengthening the company’s strategic position in the Iberian Peninsula, a leading supplier of tungsten to Europe and North America.
  • Recent drilling carried out at Borralha confirms the presence of breccia mineralization type, hosting large, near surface zones of high wolframite content showing drill intersections of:
    • Ddh Bo_05: 63.00m at 0.18% WO3 (from 54m).
    • Ddh Bo_12: 76.00m at 0.28% WO3 (from 55m).
    • Ddh Bo_8a: 123.00m at 0.28% WO3 (from 52m).

• Execution of definitive transaction agreements is anticipated by 31 January 2022 with completion occurring following publication of a JORC compliant mineral resource estimate (MRE) for the projects.

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. The Borralha and Vila Verde deposits are widely considered the most attractive undeveloped tungsten projects in Portugal. With Santa Comba advancing through the feasibility study and with the open pit permit application to be submitted in 2022, the addition of these Portuguese projects provides Rafaella with a portfolio of resources in various stages of the development cycle. The recent award of the 25-year mining exploitation licence for Borralha gives comfort of tenor and a clear path to development. 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.”

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