Terra Uranium to Acquire Undeveloped Tungsten-Tin-Molybdenum Project in NSW

Terra Uranium (ASX: T92) has entered into an agreement to acquire Dundee Resources, which owns the largest undeveloped tungsten-tin-molybdenum project in the New England region of New South Wales.

The transaction will focus on a tenement package comprising the Glen Eden, Bald Nob and Deepwater tin, tungsten, molybdenum, silver and base metals projects.

In consideration for the acquisition, Terra will issue Dundee with 10 million Terra shares and 3 million performance rights, plus $20,000 cash and a 1.25% net smelter royalty from the sale of any minerals or products from the tenements.

Glen Eden Mineralisation

Glen Eden is located approximately 50 kilometres by sealed road from the historic Ottery tin mine, which Terra is also in the process of acquiring.

The project’s mineralisation includes molybdenum, tin and bismuth in a clearly defined multi-phase brecciated greisen and stockwork complex measuring approximately 500 metres in diameter and hosted in rhyolitic volcanics.

Diamond drilling by previous explorers to 385m vertical depth returned intercepts of 82m at 0.11% molybdenum disulfide, 0.02% tin oxide and 0.08% tungsten trioxide for 0.28% tungsten trioxide equivalent from 7m, while metallurgical work by Amoco Minerals in 1981 demonstrated recoveries of 58% tin, 66% tungsten and 86% molybdenum to potentially saleable silver-tungsten and molybdenum-bismuth concentrates.

Glen Eden has an exploration target of between 20 million tonnes and 30Mt at between 0.05% to 0.08% tungsten trioxide, 0.02% to 0.04% tin oxide, and 0.06% to 0.10% molybdenum disulfide for between 0.18% to 0.29% tungsten trioxide equivalent from 100m to 150m depth.

Capital Raising

Terra will fund the acquisition via a capital raising for $864,000 in which it will issue 28.8 million new shares priced at $0.03 each to sophisticated investors.

The placement includes one free unquoted option for each new share, exercisable at $0.09 before the end of 2026.

Terra has appointed Peak Asset Management and Morgans Stockbroking joint lead managers to the placement and each will receive a cash fee equating to 6% of the gross funds raised.

Dual Development

Terra chair Andrew Vigar said he was keen to see the dual development of Glen Eden alongside Ottery.

“We are delighted to have taken the opportunity to acquire the largest undeveloped tin-tungsten-molybdenum deposit in NSW and will be looking to develop it together with the exciting new Ottery deposit,” he said.

“We thank our new and existing shareholders for their continued support and look forward to keeping everyone informed of the development of our NSW strategy to add to our Canadian uranium portfolio.”