A1 Investments & Resources (ASX: AYI) has entered into an agreement with Minatek for the acquisition of 15 million shares in emerging ferroalloy producer Hazelwood Resources (ASX: HAZ).
Hazelwood holds a majority interest in the largest, most advanced ferrotungsten plant outside of China, in Vietnam.
The company also wholly owns the Big Hill Tungsten Deposit in Western Australia which is in the Definitive Feasibility Study phase.
Big Hill contains a JORC ore Reserve capable of sustaining a 12 year mine life and can produce pure tungsten concentrate.
To settle the transaction A1 Investments & Resources will issue Minatek the total 38.6 million shares it holds in Heng Sheng Mining Corporation.
Meanwhile, the company’s buying spree does not end there. A1 Investments & Resources has also signed an agreement to acquire Zircon Resources, which holds an exploration licence over a tenement in Bridport, northeast of Tasmania.
The 118 square kilometre tenement was initially assigned for the exploration of heavy mineral sands, particularly cassiterite, zircon, illmenite, rutile, monazite, gold and gemstones.
It appears that no recoverable, significant mineral exploration has been completed in the interpreted paleostrand line areas.
If A1 Investments & Resources decides to proceed with the acquisition following due diligence, the company will settle the deal through the cash payment of A$150,000 and the issue of 55 million shares, which were last trading at $0.009 valuing the share issue at $495,000.
On the acquisition trail
Earlier this month A1 Investments & Resources acquired 8 million shares in Hastings Rare Metals (ASX: HAS).
Hastings is focused on expanding the resource at its Hastings Heavy Rare Earth Project, which hosts a JORC Resource of 36.2 million tonnes at 0.21% total rare earth oxides, 0.35% niobium and 0.89% zanthium.
The company recently finalised a $5.4 million capital raising which will help to advance the project to the Pre-Feasibility Study stage.
The Hastings Project mineralisation contains 85% heavy rare earth oxides to total rare earth oxides – the highest percentage of all advanced exploration projects.
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