Explorer Vital Metals has signed a binding term sheet to sell its Queensland-based Watershed tungsten project to Tungsten Mining for $15 million in cash.
The $15 million figure encompasses 100 per cent of the Watershed project and all exploration permits, subject to conditions such as due diligence enquiries, execution of deeds related to land use agreements, royalty deeds and all regulatory and shareholder approvals.
The money will be primarily used to fund aggressive exploration programs in West Africa following success at its Bouli gold project in Niger, which has returned grades from the Bella Tondi prospect of up to 4m at 157g/t of gold.
In addition to Bouli, Vital also possesses several zinc and gold projects in Burkina Faso.
“Vital has undertaken a review as to how best to maximise the value of the Watershed tungsten project in light of its success at the Bouli gold project,” the company said in a statement.
“For the past two years, the core focus of Vital has been on the exploration of gold in West Africa (Burkina Faso and Niger). The company is extremely encouraged with the results from drilling at the Bella Tondi prospect within the greater Bouli gold project.”
The Watershed project is 130km north of Cairns, and has mining leases and environmental authority in place for open-pit development.
Tungsten Mining owns several tungsten projects located in Western Australia, including the Mt Mulgine, Big Hill and Kilba projects.