Guardian Metal Resources plc has signed a definitive exploration lease and option to purchase agreement for the historic Tempiute tungsten project in south-central Nevada.
TERMS
The agreement follows the binding letter of intent signed at the end of October 2024.
Tempiute, formerly known as the Emerson tungsten mine, lies southwest of the company’s flagship Pilot Mountain tungsten concession.
Guardian plans to complete a site visit to the project in the second week of February to prepare for groundwork.
Tempiute, which was producing tungsten until the late 1980s, has “extensive in-place infrastructure” and lies almost entirely within patented, or private, mining claims.
On signing the agreement, Guardian paid US$50,000 in cash to Hinkinite Resources LLC and will issue 150,000 ordinary shares in Guardian Metal.
Following admission of the shares the company’s issued share capital will comprise 126,422,687 ordinary shares of 1p each.
The figure includes 931,873 issued shares each for 17 pence in the warrant exercise on 24 January for £158,418.41.
Until the Tempiute option is exercised or the definitive agreement terminated, Guardian will pay Hinkinite $25,000 in cash at the end of each six-month period.
In order to exercise the option, Guardian will within three years need to establish a mineral resource of tungsten trioxide with a minimum cut off grade of 0.4%.
The company will also pay Hinkinite a bonus of $100,000 for each 3,100 tons (WO3 metal) up to a maximum $2m in cash and / or shares, in return for 100% interest in the project.
Hinkinite will retain a limited licence to explore for and mine industrial minerals such as sand, gravel and limestone at Tempiute.
On exercise of the option, Guardian will grant Hinkinite a production royalty equal to 1.5% of the net smelter returns from all mineral production.