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Rafaella Resources enters into conditional heads of agreement to acquire Galicia Tin and Tungsten S.L.

Galicia Tin and Tungsten holds 15 mining licences valid until 2068 in the province of La Coruna – part of the autonomous community of Galicia, a top tier mining jurisdiction.
Rafaella Resources enters into conditional heads of agreement to acquire Galicia Tin and Tungsten S.L.
The Santa Comba Project is in Galicia in northern Spain

Rafaella Resources Ltd (ASX:RFR) has entered into a conditional Heads of Agreement (HoA) to acquire Galicia Tin and Tungsten S.L. (GTT), which owns the Santa Comba Project in north-western Spain.

To support the development of Santa Comba, the company has proposed a share placement raising up to $2.6 million at 20 cents per share.

Funds raised will support further drilling to upgrade and extend near-surface resources as well as the feasibility study to unlock access to project funding from the German government.

Issue of 17.5 million shares

Subject to shareholder approval, the consideration payable for the proposed acquisition is the issue of 17.5 million shares to vendors at a price of 20 cents per share.

An additional 30 million shares will be issued over two equal tranches subject to critical milestones being fulfilled.

An offer of offtake and project debt financing has been secured via a leading global German-based consumer H.C. Stark Tungsten Gmbh subject to completion of a positive feasibility study.

Primary crushing, screening and dense media separation plant constructed in 2012

 

The Santa Comba project is fully permitted for underground and partial open pit mining with defined maiden JORC mineral resources recorded in 2016 by GTT as shown below:

The near surface disseminated JORC inferred mineral resource estimate is based on 23 drill holes conducted over less than 10% of the prospective endogranite lithology.

About 5.1 million tonnes with an average grade of 0.203% tungsten oxide has been defined.

Individual lode widths range from 2 metres to 30 metres and as part of the feasibility studies, the company will assess this style of mineralisation for potential open pit mining

Conveyor belt, crusher and ROM pad

 

The Santa Comba underground was mined in substantial quantities between 1980 and 1985, before becoming uneconomic due to low tin and tungsten prices.

Surging demand and prices for tungsten and tin means the company believes there is a compelling opportunity to re-commission the mine.

In addition, the recent discovery by GTT of the near-surface resource at Santa Comba suggests substantial additional shallow tonnage could be developed via open pit mining.

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