Tungsten deal hits roadblock

An $8.7 million deal between local mining companies Tungsten Mining and GWR Group has hit a roadblock, after the ASX said the sale could not go ahead.

Last month, GWR Group struck a deal to sell its Hatches Creek tungsten project in the Northern Territory to Tungsten.

However, Tungsten said today the deal had not been approved.

“The purchase was conditional upon the satisfaction of certain conditions precedent, including shareholder approval under ASX listing rule 10.1,” Tungsten said in a statement to the ASX.

“Following consultation with ASX, the company has been advised that the transaction as currently structured, purchase by way of cash consideration of $8.68 million, cannot proceed.

“GWR and TGN remain committed to implement a transaction to enable TGN to invest in the Hatches Creek tungsten project and have agreed to negotiate in good faith such amendments as may be required.”

The project is located about 400 kilometres east of Alice Springs and covers two exploration licences over 31.4 square kilometres.

GWR completed drilling programs in 2016 and 2017, which confirmed high-grade tungsten prospects.

GWR holds a 9.73 per cent stake in Tungsten Mining.

Shares in Tungsten last changed hands at 33 cents each, while GWR shares last traded at 10 cents each.