As per the results of a feasibility study published in 2009, the Mactung tungsten project will have a mine life of 11.2 years and a production capacity of 2,000 tonnes of ore per day

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Fireweed Metals signs definitive agreement to acquire the Mactung tungsten project. (Credit: Martina Janochová from Pixabay)

Fireweed Metals has signed a definitive asset purchase agreement with the government of Northwest Territories to acquire the Mactung tungsten project located in Yukon and Northwest Territories, Canada for a price of C$15m ($11m).

The definitive agreement follows a binding letter of intent (LOI) signed by the Canadian mining exploration and development company with the regional government in June 2022.

Mactung, which is a tungsten skarn deposit, is situated on the eastern margin of the Selwyn basin in the Tombstone-Tungsten Belt (TTB) of the Cordillera region.

Fireweed Metals CEO Brandon Macdonald said: “Last year we announced a binding Letter of Intent to acquire Mactung to a very positive reception, so we are now especially pleased to have signed the final Asset Purchase Agreement.

“This acquisition positions Fireweed as not just a leading global tungsten player, but a leading Critical Minerals explorer and developer when considered in combination with our Macmillan Pass Project, one of the world’s largest undeveloped zinc resources, and our Gayna River zinc-lead-gallium-germanium project.”

As per the terms of the agreement, Fireweed Metals has paid a sum of C$1.5m ($1.1m) upon the execution of the LOI.

The company will also pay an additional C$3.5m ($2.57m) within 18 months of the closing date of the definitive agreement.

Besides, Fireweed Metals will pay C$5m ($3.68m) when it announces its plan to build a mine on the Mactung project or any part of the mineral property interests controlled by the company in Yukon.

According to the mining company, the Mactung project is one of the largest and highest-grade tungsten deposits in the world as well as one of the few potential sources of scale for tungsten outside of China.

As per the feasibility study released for the project by North American Tungsten (NATC) in 2009, the Mactung tungsten project will have a mine life of 11.2 years and a production capacity of 2,000 tonnes of ore per day.