Terra Uranium Raises $865K to Acquire Major NSW Tungsten-Molybdenum Asset

Strategic Acquisition in Critical Minerals

Terra Uranium Limited (ASX, T92) has taken a decisive step to broaden its portfolio beyond uranium by signing a binding term sheet to acquire Dundee Resources Pty Ltd. This acquisition grants Terra Uranium full ownership of the Glen Eden, Bald Nob, and Deepwater projects in New South Wales, with Glen Eden standing out as the largest undeveloped tungsten-molybdenum project in the state.

The move aligns with the company’s strategy to capitalize on the surging demand for critical minerals, especially tungsten, which has seen prices soar to 12-year highs, recently surpassing USD 450 per metric tonne unit. This price surge is underpinned by supply restrictions, notably from China, and increased demand from military, aerospace, and industrial sectors.

Geological Promise and Historical Data

Glen Eden’s mineralisation is hosted within a substantial hydrothermal system characterized by a 500-meter diameter core of greisen breccias and stockwork veins rich in tungsten, molybdenum, tin, and bismuth. Historical diamond drilling campaigns, notably by Amoco Minerals in the early 1980s, have intersected mineralisation to depths of nearly 400 meters, with assays indicating significant grades that remain open at depth and laterally.

Metallurgical testing from the 1981 Amoco program demonstrated encouraging recoveries, 58% for tin, 66% for tungsten, and 86% for molybdenum, suggesting the potential for economically viable concentrates. The geological model also hints at the possibility of deeper, higher-grade zones akin to the renowned Henderson molybdenum-tungsten deposit in the United States.

Funding and Forward Exploration Plans

To finance the acquisition and subsequent exploration, Terra Uranium has secured firm commitments for a placement raising approximately $865,000 at an issue price of $0.03 per share, including options exercisable at $0.09. The company plans to undertake a comprehensive drilling program over the next two years aimed at converting the current exploration target into a JORC-compliant mineral resource.

This exploration will include re-assaying historic drill core, integrating geophysical data, detailed field mapping, and targeted drilling to delineate higher-grade zones and test the system’s depth potential. The acquisition and exploration program are expected to complete within 4 to 8 weeks, pending shareholder and regulatory approvals.

Balancing Growth with Existing Uranium Assets

While expanding into critical minerals, Terra Uranium retains its focus on uranium exploration in Canada’s Athabasca Basin, a globally significant uranium province. The company’s diversified approach positions it to benefit from the anticipated recovery in uranium prices alongside the growing strategic importance of tungsten and molybdenum.

Chairman Andrew Vigar expressed enthusiasm about the acquisition, highlighting the complementary nature of the Glen Eden project to the nearby Ottery Tin Mine and the company’s broader strategic vision.