Pinnacle Minerals secures option over US tungsten projects
Key points
- Pinnacle Minerals executed a binding agreement to acquire 100% of APT Tungsten, granting it exclusive options over five Utah tungsten projects.
- The deal is accompanied by a share placement of up to $1.3 million, with American Tungsten & Antimony subscribing for $412,066.
- The acquisition aligns with tightening United States defence rules that restrict tungsten sourced from China, Russia, North Korea, or Iran starting in January 2027.
Pinnacle Minerals (ASX:PIM) has entered into a binding agreement to acquire APT Tungsten, securing rights to five tungsten projects in Utah covering 199 claims across roughly 4,000 acres.
The target projects include historical production sites at Lone Pine, Desert Flower, and Super W, contrasting with the company's current focus on its existing assets in Australia and Canada.
“Our focus now is on completing the transaction and getting to work. We plan to start on-ground exploration in January 2027 at Hero (House Range), our priority project, with mapping, sampling and validation of historical workings across the portfolio," said Pinnacle Minerals Managing Director and CEO William Witham.
The consideration includes 33.3 million ordinary shares at $0.045 alongside 33.3 million performance shares, supported by an up to $1.3 million placement.
Pinnacle Minerals plans to commence on-ground exploration at the priority Hero project in January 2027 following its shareholder vote scheduled for Nov. 30.
Following the announcement, the Pinnacle Minerals share price was up at $0.048.
The company also signed a non-binding memorandum of understanding with Nexus Metals regarding potential toll treatment or offtake arrangements for the Utah assets.
