Yukon mining firm Fireweed Metals Corp. has signed a binding letter of intent to acquire a major tungsten mining project from the Northwest Territories government earlier this month.
The Mactung Tungsten project straddles the border between the Yukon and Northwest Territories. It was acquired by the N.W.T. government in 2015 as part of the insolvency of North American Tungsten Corporation Limited.
A June 7 news release from the Northwest Territories government states that they took over the project from the insolvent company in order to protect the value of future development. It states the government’s goal had always been to return it to the private sector.
“Tungsten prices have improved significantly since 2015 and Mactung hosts one of the world’s highest grade deposits,” the N.W.T. government notice reads.
The terms of the letter of intent were released by the Northwest Territories government — the purchase price has been set at $15 million.
The project is adjacent to a project Fireweed is already working on in the Selwyn mountains. It is accessible via the North Canol Road.
Fireweed Metals Corp. rebranded itself two weeks after the announcement of the purchase of the tungsten property. It was formerly known as Fireweed Zinc.
In a June 21 notice on the company’s website Fireweed’s CEO Brandon Macdonald stated that the rebranding reflects the acquisition of the tungsten project along with a zinc-gallium-germanium project near the Gayna River.
“The potential development of a Canadian tungsten property of this magnitude is an achievement and this addition to Fireweed Zinc’s suite of critical mineral properties holds great potential to enhance the economies of both the Yukon and Northwest Territories,” said Yukon economic development minister Ranj Pillai.
“The outlook for critical mineral development in Canada’s North is very positive. Critical minerals are an essential resource in development of clean energy and many of them are found here in the Yukon. Tungsten is used in mining, industrial industries, automotive and aerospace applications. Mineral exploration and development help advance the clean energy transition and combat climate change.”
Contact Jim Elliot at jim.elliot@yukon-news.com