Golden Metal Resources plc has signed a non-binding letter of intent for a tungsten concentrate off-take agreement from its Pilot Mountain tungsten project in Nevada.
WESTERN SUPPLIES
The deal with Global Tungsten & Powders LLC (GTP) of Towanda, Pennsylvania is subject to due diligence and to Golden Metal securing funds to develop the project.
GTP develops, manufactures and markets refractory metal powders such as tungsten, tungsten carbide, and cobalt. The company has production sites in the United States, Finland, the Czech Republic and Luxembourg.
Minimum off-take is 50,000 metric ton units (MTUs) W03 contained in tungsten concentrates, which may increase to 70,000 MTUs by mutual agreement, subject to successful development of the project.
Specific product off-take is for 65% WO3 tungsten concentrate.
The two companies will also discuss possible co-operation to develop a “Western World” supply chain strategy aligned with the US Government’s recent policy announcements on building strategic stockpiles of critical minerals including tungsten products.
ENCOURAGING
Chief executive Oliver Friesen added that the letter of intent marked a significant milestone and an encouraging step forward for the Pilot Mountain.
“Today’s announcement also further bolsters the project’s overall profile and its attractiveness as a target for non-dilutive grant funding for exploration and development, something the company is actively pursuing at present.”
Power Metal Resources plc owns 62% of Golden Metal.