Golden Metal Resources (GMET), a mineral exploration company based in Nevada, USA, has raised a gross £1.98m via an AIM listing, valuing it at £7.2m.
The company owns four mining assets focus on tungsten, gold, copper, silver, and zinc across a 22.8km2 area of Nevada, including Pilot Mountain, Garfield, Stonewall Projects, and an option over the Golconda Summit Project. These projects consist of mining claims on land managed by the United States Bureau of Land Management.
The company's directors believe that having a collection of high-quality mining assets in Nevada, within a single US-focused publicly quoted company, presents an attractive investment opportunity as critical metals like tungsten fall into supply deficit.
Specifically, they expect the 14.8km2 Pilot Mountain Project to expand its existing tungsten resources and explore additional mineral-rich zones. The project hosts a tungsten-copper-silver-zinc Mineral Resource Estimate (MRE) which includes 12.53Mt at 0.27% W03 (tungsten tri-oxide) with significant copper-silver-zinc credits. It benefits from nearby access to power, water, skilled labour, and transportation infrastructure, with reliable access to groundwater for the project's needs.
They also see potential for a major gold discovery at the Golconda Summit Project, based on previous surface gold mineralization findings. While the primary focus will be on these two projects, the directors also see potential value in the Garfield and Stonewall Projects.
On April 8, 2022, Golden Metal raised £750,000 through a pre-IPO financing, with Power Metal holding 83.13% of the existing ordinary shares. Following the IPO, Power Metal will hold 62.1% of the company's enlarged share capital.
Oliver Friesen, CEO of Golden Metal, commented: "Golden Metal's admission to AIM comes at a time when it is clear that the world needs more critical, precious-and base-metals. This represents an exciting opportunity for a company such as ours with ownership of four diverse exploration and development assets located wholly within one of the top mining jurisdictions in the world. I believe that our Pilot Mountain Project, with its tungsten MRE, offers the greatest potential for exploitation, given that the US currently has no domestic primary production of the metal and is looking to reduce its heavy reliance on imports of critical metals from China.”
View from Vox
Golden Metal’s mining assets are strategically located within major metallogenic belts that host active and globally significant precious and base metal mining operations. These assets possess favourable geological characteristics that make them promising for various deposit types including skarn, carlin, epithermal, and porphyry deposits.
Among these projects, the Pilot Mountain Project stands out as it offers substantial exploration potential for tungsten, which has been designated as a critical metal by the British Geological Survey, the US Geological Survey, and the European Commission. Tungsten demand is set to rise by as much as 7% a year, with demand predicted to outstrip supply in the near-term.
The fundraising provides Golden Metal with an opportunity to tap into this burgeoning demand by expanding on the existing Mineral Resource Estimate (MRE), conducting updated technical studies for potential resource development, obtaining further permits, applying for relevant grants such as the DOD Defence Production Act (DPA) Title III grant office, exploring commodity marketing opportunities, and conducting additional metallurgical studies.
To keep track of this progress follow Golden Metal Resources for more news and updates.