IRIS Metals Targets 850,000 Tons of Tungsten with $2M Farm-In Deal

Strategic Expansion into Tungsten

IRIS Metals (ASX, IR1) has taken a significant step to diversify its critical minerals portfolio by signing a binding Heads of Agreement with Finley Mining Inc, granting exclusive rights to farm-in to the Finley Basin Tungsten Project in Granite County, Montana. This move marks IRIS's first foray into tungsten, a metal of growing strategic importance for defense, energy, and industrial applications.

The Finley Basin Project is notable for its historical exploration by Union Carbide in the late 1970s and early 1980s, which identified a non-JORC compliant tungsten reserve estimated at 850,000 tons with an average grade of 0.68% WO3. While these figures are yet to be independently verified or classified under modern JORC standards, they suggest a high-grade deposit relative to many global tungsten occurrences.

Farm-In Terms and Exploration Plans

The farm-in agreement allows IRIS to earn up to a 100% interest in the project through staged exploration expenditure totaling up to USD 2 million over four years, contingent on delivering a JORC-compliant Inferred Resource. The initial phase requires USD 1 million in exploration and resource delivery within two years, followed by a further USD 1 million to increase the stake to 90%, with the final 10% converting to a 2% net smelter return royalty.

Exploration activities are slated to commence in early 2026, with a 4,500-metre drill program planned to confirm and expand on historical results. IRIS also aims to leverage a nearby fully permitted contract mill in Phillipsburg, Montana, which could expedite processing and potential production if resource confirmation is successful.

Capital Raising Cancelled Amid Acquisition

Coinciding with this acquisition announcement, IRIS Metals has decided to cancel its previously proposed capital raising program. The board cited the strategic merits of the tungsten farm-in as the primary reason, opting to keep the market fully informed before pursuing additional funding. This decision underscores the company's confidence in the project's potential and its alignment with IRIS's broader strategy to expand its critical minerals footprint in the United States.

IRIS's Executive Chairman, Peter Marks, highlighted the importance of tungsten as a critical mineral and the project's location within a mining-friendly jurisdiction. The acquisition complements IRIS's existing lithium and rubidium projects in South Dakota, positioning the company to capitalize on increasing U.S. demand for domestically sourced critical minerals amid geopolitical supply chain concerns.

Outlook and Strategic Implications

While the historical resource data remains unverified and exploration is at an early stage, the Finley Basin Project offers IRIS a promising opportunity to diversify and strengthen its portfolio. The proximity to processing infrastructure and supportive U.S. critical minerals policies could accelerate project development timelines if exploration results prove positive.

Investors will be watching closely as IRIS advances permitting and drilling activities through 2026, with a resource estimate expected by early 2027. The company's ability to integrate tungsten alongside its lithium assets could enhance its position in the critical minerals sector, which is increasingly vital for clean energy and defense technologies.