- Rafaella Resources (RFR) executes a binding heads of agreement with PanEx Resources for the acquisition of Pan Iberia
- Pan Iberia owns the contractual rights to acquire 100 per cent of the Borralha tungsten project and 90 per cent of the Vila Verde tungsten project, both of which are in Portugal
- Total consideration for the acquisition is €4 million (A$6.21 million) which is based upon an independent JORC 2012 mineral resource estimate (MRE) for Borralha
- The first €1 million (A$1.55 million) is to be paid in cash with the remainder payable in Rafaella shares with the value to be determined
- Rafaella is down 1.39 per cent on the market with shares trading at 7.1 cents
Rafaella Resources (RFR) has executed a binding heads of agreement with PanEx Resources for the acquisition of Pan Iberia.
Pan Iberia owns the contractual rights to acquire 100 per cent of the Borralha tungsten project and 90 per cent of the Vila Verde tungsten project, both of which are located in Portugal.
The Borralha and Vila Verde projects lie 210 kilometres and 250 kilometres, respectively, from Rafaella’s Santa Comba tungsten and tin project in Spain.
Both have been subject to historical mining with work dating back to the early 20th century.
Total consideration for the acquisition is €4 million (A$6.21 million) which is based upon an independent JORC 2012 mineral resource estimate (MRE) for Borralha of at least 25,000 tonnes of tungsten trioxide at a minimum grade of 0.14 per cent.
If the MRE is less than the target milestone, an adjustment is made to the consideration, subject to a minimum payment of €2 million (A$3.10 million) upon completion.
The first €1 million (A$1.55 million) is to be paid in cash with the remainder payable in Rafaella shares with the value yet to be determined.
The acquisition is subject to Rafaella completing legal, technical and commercial due diligence.
Execution of agreement is expected by January 31, 2022, with completion following the publication of a JORC compliant MRE for both projects.
Managing Director Steven Turner commented on the acquisition.
“This is an important acquisition for the company as we position ourselves to become a leading Western European supplier of tungsten, a critical metal facing significant supply chain risks due to the dominance of supply from China,” Mr Turner said.
“Rafaella will be able to apply many of its findings at Santa Comba to the Borraha and Vila Verde development programs. We look forward to updating the market on the outcome of the due diligence and the results of the maiden JORC MRE.”
Rafaella was down 1.39 per cent on the market with shares trading at 7.1 cents at 2:40 pm AEDT.