Terra to Raise $600K as It Acquires True American Tungsten Project with 11.1% WO3 Samples

Strategic Acquisition in a Critical Mineral Hotspot

Terra Critical Minerals Limited (ASX – T92) has taken a decisive step into the tungsten market by signing a binding agreement to acquire 100% of the True American Tungsten Project, located in the heart of Nevada’s prolific mining district. This acquisition places Terra in a prime position within a region known for significant tungsten mineralisation, adjacent to established projects such as the Springer Mine and Pilot Mountain.

The True American Project is notable for its high-grade tungsten mineralisation, with historic samples reporting grades as high as 11.1% tungsten trioxide (WO3). Despite its early 20th-century production history, the site has seen little modern exploration since the 1940s, presenting a compelling opportunity for Terra to unlock untapped potential.

Geological Promise and Exploration Plans

Geologically, the project sits at the intersection of the Getchell and Battle Mountain mineral belts, with tungsten mineralisation hosted in skarn deposits formed by granodiorite intrusions reacting with limestone units. The presence of multiple scheelite-bearing lenses and ore float suggests a fertile system, with the potential for larger deposits concealed at depth.

Terra plans a comprehensive exploration program including detailed geological mapping, geochemical sampling, and geophysical surveys to delineate ore bodies. The company also envisions diamond drilling to test promising targets where geophysical and geochemical anomalies coincide with favourable geology.

Market Context and Funding Strategy

The timing of this acquisition aligns with a surge in tungsten prices, which have more than doubled in 2025, driven by supply disruptions from China and growing demand in defense, aerospace, and high-tech manufacturing sectors. With over 80% of global tungsten supply controlled by China, the strategic importance of domestic and allied sources has never been greater.

To support the acquisition and exploration activities, Terra is launching a non-renounceable entitlement offer of quoted options, aiming to raise up to $600,000. This capital raise will fund initial exploration and potentially pave the way for further investment as the project advances.

Acquisition Terms and Future Milestones

The acquisition includes an upfront payment of A$60,000, issuance of 1.25 million Terra shares, and milestone payments contingent on exploration success, including measured or indicated reserves thresholds. Additionally, royalties of 0.5% net smelter returns are granted to vendors, with options for Terra to buy back these royalties.

Closing is expected by the end of 2025, subject to customary conditions including due diligence and regulatory approvals. Terra has committed to spending at least A$1 million on the project over the next two years, underscoring its commitment to advancing the asset.

Balancing Opportunity with Caution

While historic data supports the project’s potential, it is important to note that these results are not reported under the JORC Code and have not been independently validated. This introduces an element of uncertainty that Terra aims to address through its planned exploration program.

Nonetheless, the acquisition represents a strategic move into a critical mineral with growing geopolitical and industrial significance, positioning Terra to benefit from tightening supply and robust demand fundamentals.