Blaze Minerals Secures 90% Stake in High-Grade Ugandan Tungsten Projects and Raises $2.25M
Blaze Minerals has struck a binding deal to acquire a majority interest in two historically rich tungsten projects in Uganda, backed by a $2.25 million capital raise to fund exploration and acquisition costs.
- Acquisition of 90% interest in Bahati and Buyaga tungsten projects
- Exceptional high-grade tungsten samples from Bahati mine due diligence
- Buyaga project covers 250 km2 with no prior modern exploration
- Capital raising of $2.25 million via share placement at $0.0005
- Planned advanced exploration including LiDAR and drone surveys
Strategic Acquisition Targets High-Grade Tungsten in Uganda
Blaze Minerals Limited (ASX:BLZ) has entered a binding agreement to acquire up to 90% of two tungsten projects in Uganda, the Bahati and Buyaga Projects, positioning itself in a jurisdiction with a history of high-grade tungsten production. The Bahati Project, located in the prolific Karagwe-Ankole Belt, includes three historical mines that collectively produced roughly 270 tons of wolfram at grades between 1.0% and 2.2% WO3. Recent due diligence has revealed exceptional channel samples exceeding 20% WO3 and a grab sample hitting 56.23% WO3, underscoring the project's high-grade potential.
Buyaga Project Offers Untapped Exploration Potential
The Buyaga Project surrounds the historical Buyaga mine and spans a substantial 250 square kilometres within the Buganda granitic suite. Despite its size, the area has never undergone modern exploration techniques, presenting a significant opportunity for discovery. The historical Buyaga mine produced approximately 49 tons of wolfram concentrate before ceasing operations in the early 1970s. Blaze plans detailed mapping and soil sampling to unlock the project's potential.
Comprehensive Exploration Campaigns Planned
Blaze intends to deploy high-resolution drone imagery, LiDAR scanning of underground workings, and detailed geological mapping at Bahati to build a 3D model for targeted drilling. At Buyaga, the focus will be on mapping outcrops and conducting close-spaced soil sampling, especially around granite-metasediment contact zones. These preparatory activities aim to establish drill targets that could define mineralised corridors and host rock structures.
Capital Raise to Support Acquisition and Exploration
To fund the acquisition and exploration, Blaze has secured firm commitments for a $2.25 million placement through the issue of 4.5 billion shares at $0.0005 each. The raising will occur in two tranches, with the first tranche of 381 million shares issued under the company’s placement capacity and the remainder subject to shareholder approval. The company has mandated CPS Capital Group as lead manager, with fees structured as a cash payment plus a percentage of funds raised.
Acquisition Structured in Three Stages with Deferred Payments
The acquisition of Mgahinga Minerals Pty Ltd, which holds the project licenses through its Ugandan subsidiary, will be completed in three stages. Initial payment of US$125,000 secures 80% interest, with further payments of US$500,000 and US$1 million unlocking the remaining 20% over 24 months. Completion depends on due diligence outcomes expected by October 2026, and Blaze will solely fund exploration activities post-completion through to a definitive feasibility study or withdrawal.
Capital Consolidation Proposed to Streamline Share Structure
Alongside the placement, Blaze plans to seek shareholder approval for a 20:1 consolidation of capital, which would reduce the total shares on issue and potentially improve liquidity. This move is timed with the shareholder meeting for the second tranche approval, indicating a coordinated effort to tidy the capital structure amid the company's growth initiatives.
Bottom Line?
Blaze Minerals is positioning itself to capitalise on record tungsten prices with a high-grade asset acquisition and a well-funded exploration strategy in Uganda, though success hinges on upcoming due diligence and execution of planned drilling campaigns.
Questions in the middle?
- Will the upcoming drilling campaign at Bahati confirm continuity of high-grade tungsten mineralisation?
- How will the market respond to the significant dilution from the $2.25 million placement and proposed share consolidation?
- What exploration results from the largely untested Buyaga Project could redefine its value proposition?
