- Rafaella Resources shareholders have approved of the acquisition of Galicia Tin & Tungsten SL
- This acquisition will change the company as it will move from a gold explorer of gold and copper to a developer of tungsten and tin
- To support the development of the project, Rafaella is conducting a placement to raise $2.6 million at 20¢ per share
Rafaella Resources shareholders have approved of the acquisition of Galicia Tin & Tungsten SL.
This acquisition will change the company as it will move from an explorer of gold and copper to a developer of tungsten and tin.
Galicia owns the Santa Comba tin and tungsten project in northwest Spain. The project is permitted for both underground and open put mining.
To support the development of the project, Rafaella is conducting a placement to raise $2.6 million at 20¢ per share.
Rafaella’s Executive Director Ashley Hood is pleased with the support received for the acquisition.
“We are very pleased that our shareholders have shown such strong support for the acquisition of GTT (Galicia). Once completed, this acquisition will see Rafaella transform from an explorer of gold and copper to a developer of tin and tungsten,” Ashley said.
Transamine Trading SA has agreed to support the project with a 100 per cent offtake for three years.
Transamine Holdings and Investments (THIL) has committed $1 million followed by a further $500,000 upon the delivery of a positive project feasibility study.
The agreements with Transamine and THIL remain subject to final documentation.
“We look forward to working with Transamine to ramp up production at the project, which possesses low entry costs and an excellent location with proximity to key infrastructure,” he said.
Demand for tungsten is rising due to commercial, industrial and military applications.
“There are significant tailwinds in the tungsten market that we hope to capitalise on so that we can deliver value to our shareholders,” Ashley added.
Following the acquisition, two Galicia representatives Steven Turner and Robert Wrixon will join the company’s board.
Rafaella’s current Chairman Graham Durtanovich will resign from the Board.