- Rafaella Resources (RFR) has secured a $7.9 million deal to buy the San Finx tin and tungsten mine in Northern Spain
- The company has executed a binding agreement with Valoriza Mineria to acquire Tungsten San Finx, the owner of the San Finx tin and tungsten mine
- The deal involves Rafaella paying through royalties in the future, after the mine’s produces 1000t of metal
- San Finx mine last operated in 2017 and produced 35t of high-grade tin concentrate and 32t of wolframite concentrate
- The mine lies 50km south of Rafaella’s Santa Comba tungsten and tin project
Rafaella Resources (RFR) has secured a $7.9 million deal to buy the San Finx tin and tungsten mine in Northern Spain.
But rather than having to pay cash up-front or raising capital to fund the acquisition, the deal involves Rafaella paying through royalties in the future – once the mine’s well into production.
The company has executed a binding agreement with Valoriza Mineria to acquire Tungsten San Finx, the owner of the San Finx tin and tungsten mine.
The mine, which last operated in 2017 and produced 35t of high-grade tin concentrate and 32t of wolframite concentrate, lies 50km south of Rafaella’s Santa Comba tungsten and tin project.
Managing Director Steven Turner says it’s also complementary to the Portuguese Borralha and Vila Verde tungsten projects and strengthens the company’s strategic position in the Iberian Peninsula.
“This low-cost acquisition further strengthens the company’s Iberian position following the recent agreement to buy two Portuguese tungsten projects, with a permitted mine that has recently been in production,” Mr Turner said.
“The company will be looking at debt options to fund the modest capital requirements.”
Royalties will be payable by Rafaella Resources on a quarterly basis at 2.5 per cent, once the first 1000t of metal has been sold. The rate of royalty increases with the average price of tungsten and tin.
Valoriza, a subsidiary of Spanish infrastructure and engineering services conglomerate, SACYR, has recently sold other mine and exploration holdings as the group looks to exit from its mining assets.
The company has a market cap of $13.73 million and shares last traded at 7.2c.