Shares of W Resources (LSE:WRES) have been on an uptrend since the miner signed two major long-term tungsten offtake deals last Friday (February 23).
The company’s share price has increased 2.68 percent since the announcement, and is up 112.96 percent year-to-date.
The London-listed company will provide 66 percent tungsten concentrate to Wolfram Bergbau und Hütten, the largest tungsten processing company in Europe, and to a leading supplier to the US tungsten market, the company said in a statement.
The agreements will cover initial T2 development of W Resources’ La Parrilla mine, and will account for approximately 80 percent of the planned production tonnage from this phase.
Addressing the offtake agreements, Michael Masterman, chairman of W Resources, commented, “[t]he agreements provide W with assurance of a solid revenue stream once production commences in early 2019 as we now focus on the implementation of the mine development plan following the recent US$35 million funding from BlackRock.”
According to the company, La Parrilla is one of the largest tungsten deposits in the western world and is scalable at a low cost. The mineral resource estimated by Golder Associates in April 2017 at a cut-off grade of 0.04 percent WO3 is 49 million tonnes at 0.1 percent WO3 and 0.011 percent tin.
In addition to supplying tungsten concentrate to each company, W Resources has also promised to provide competitive pricing terms.
Aside from La Parilla, W Resources is developing the Regus and Tarouca tungsten projects in Portugal. It also owns the CAA Portalegre gold–copper project and Monforte-Tinoca copper project in the country.
As of 9:30 a.m. EST on Wednesday (February 28), the company’s stock sat at GBX 0.58.
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Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.