www.blackfireminerals.com.au
Black Fire Minerals' (ASX: BFE) corporate strategy includes a Mining House structure that allows both direct participation in and investment within the resources industry. The company's primary commodity focus is gold, copper and strategic minerals.
Black Fire currently has three active projects, the Longonjo Rare Earth (REE) Project in Angola, the Mystique Gold JV in Western Australia and the Karibib Lithium Project in Namibia, and is actively assessing new opportunities in Australia, Asia, the Americas and Africa.
Black Fire Minerals 'highly encouraged' during due diligence on Pilot Mountain
Black Fire Minerals (ASX: BFE) technical due diligence activities are nearly complete with the company 'highly encouraged' by the potential of the project.
Black Fire said legal due diligence is incomplete with the project vendor, Pilot Mountain Resources, informing the company that they are now unlikely to be able to deliver unencumbered title to the central 45 (of a total of 154) Mining Claims by the end of the current agreed due diligence period.
Pilot Mountain has advised that they are currently taking action to deliver unencumbered title to these 45 claims and are confident of the outcome.
Due to the potential of the project, the Black Fire board have unanimously decided that despite the potential delay, Pilot Mountain represents a significant advanced project opportunity.
The potential is highlighted from the substantial tungsten price increases over the last few years, and as a result Black Fire has agreed to an extension to the due diligence period to allow resolution of title.
About the acquisition
In February this year Black Fire entered into an agreement to acquire the advanced project from Pilot Mountain Resources, as subsidiary of Pacific Gold Corporation (OTCBB: PCFG).
The project ranks favourably in tungsten grade with many existing tungsten mines and resource projects worldwide.
Under the terms of the deal with Pacific Gold Corporation, Black Fire will pay an initial US$50,000 in cash for a 100 day exclusive due diligence period and then may exercise its right to acquire a 24 month option to purchase for a further cash payment of US$450,000.
At any time before the end of the option period, the company may acquire 100% of the project for further cash payments spread over a further two year period totalling US$1.5m.
A further and final cash payment of US$1 million will be made upon the commencement of commercial mining.
The project is also subject to a royalty agreement with a third party totalling 2% of the gross revenue of any mining operation.
The project is located 250 kilometres southeast of the city of Reno in the mining friendly state of Nevada, USA, and its tenure covers significant tungsten, copper and silver mineralisation.
Union Carbide Corp initially discovered the prospect in 1916 and explored it between 1977 and 1983.
