Fireweed Metals Corp (TSX-V:FWZ, OTCQB:FWEDF) has signed a definitive asset purchase agreement to acquire a 100% interest in the Mactung Tungsten project in Yukon and Northwest Territories, Canada.
Mactung is one of the largest and highest-grade tungsten deposits in the world and one of the few potential sources of scale for this critical metal outside China, the company said. It has seen approximately 38,000 meters of historic drilling outlining a large, high-grade tungsten resource and produced a positive historic feasibility study.
Fireweed is targeting a second-quarter resource update on the project and working to include by-product metals, such as gold, copper and bismuth, in addition to tungsten.
READ: Fireweed Metals drills high-grade zinc and silver at Boundary Zone in Yukon
The agreement is expected to close on or about April 5. Specifically, the Government of Northwest Territories is selling the Mactung project to Fireweed for a total purchase price of C$15 million, to be paid in stages.
“Last year we announced a binding letter of intent to acquire Mactung to a very positive reception, so we are now especially pleased to have signed the final asset purchase agreement,” CEO Brandon Macdonald said in a statement.
“This acquisition positions Fireweed as not just a leading global tungsten player, but a leading Critical Minerals explorer and developer when considered in combination with our Macmillan Pass project, one of the world’s largest undeveloped zinc resources, and our Gayna River zinc-lead-gallium-germanium project.”
Mactung carries an existing net smelter return royalty of 4%, which is held by a third party, 2% of which can be purchased at any time for $2.5 million, the company said.
Meanwhile, Fireweed also announced the appointment of a new corporate secretary and a small stock option grant to staff.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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