Nevada-focused tungsten developer Perpetual progresses US financing strategy
Perpetual Resources says it has made progress with US government engagement as part of the funding strategy for the Nevada Scheelite tungsten project, in Nevada.
Having appointed strategic advisory firm GreenMet earlier this year, the companies have been discussing with relevant US government investment and critical mineral supply chain stakeholders the potential for Perpetual’s planned future domestic source of tungsten in the US.
GreenMet is assessing multiple potential funding and financing pathways for Nevada Scheelite, particularly those offered by the US Department of War and the US Department of Commerce.
“GreenMet is engaging with US strategic investors, defence and critical minerals supply-chain participants and potential downstream counterparties to assess complementary funding, strategic investment and potential offtake opportunities.
“The objective is to establish a funding strategy capable of supporting the staged technical advancement of Nevada Scheelite and, subject to successful exploration, resource definition and technical studies, its potential redevelopment as a domestic US tungsten operation,” says Perpetual chairperson Julian Babarczy.
He adds that the effort is about more than simply identifying funding programmes, rather the parties are working to position the project within the US domestic tungsten supply chain and determine how government funding and other forms of strategic capital can accelerate the project’s development without needing shareholder capital.
Notably, the US has had no domestic tungsten mine production since 2015 and is fully reliant on imports and recycled material to meet demand. Tungsten has been designated as a critical mineral by the US government owing to its use in defence, aerospace, cutting tools and advanced manufacturing.
Additionally, from next year, US defence contractors will not be able to source tungsten products containing material mined, refined, separated, melted or produced in China, Russia, North Korea or Iran, which will markedly increase demand from US defence supply chains from secure jurisdictions.
In this regard, Babarczy is confident that Nevada Scheelite is distinguished from many earlier-stage critical mineral projects in that it is a past-producing tungsten mine with patented mining claims and substantial existing underground development in place. It is also supported by an extensive historical technical dataset that includes a large number of historical drill holes and sampling points.
While GreenMet has confirmed initial indications of interest from US government agencies and other stakeholders, the firm will narrow the opportunities currently under assessment and announce a preferred pathway or combination of pathways.
Meanwhile, Perpetual staked 62 new lode mining claims covering about 1 272 acres in the surrounding area, which has expanded the Nevada Scheelite project area by 15 times. Maiden drilling at the project is planned to start before the end of the year.