In what CEO Oliver Friesen has described as “the most important day” in his company’s history, Guardian Metal Resources PLC (OTCMKTS: GMTLF) (LON: GMET) (FRA: 8TM) has secured a US$6.7-million-dollar award from the United States Department of Defense.
The pivotal funding comes at a time when the American government has been taking unprecedented interest in domestic critical minerals. Guardian’s subsidiary Golden Metal Resources will be utilizing the sum to propel development of its Pilot Mountain tungsten operation in Nevada, beginning with a pre-feasibility study.
As Guardian currently holds the number one undeveloped tungsten deposit in the country and the mineral’s price is sitting at a 12-year high, the government’s capital injection only makes sense. China, the world’s top supplier, implemented strict export controls on the commodity in February, sparking national security concerns in the U.S and driving up its value.
“Once again a huge thanks to the U.S. DoD and the Trump Administration for delivering this crucial award which allows us to rapidly push forward towards a mined source of tungsten in the United States,” Friesen commented on social media.
No significant tungsten production has occurred on American soil for approximately a decade. American weapons and tech manufacturers have been forced to procure it from countries like Russia, Vietnam, North Korea and Bolivia in recent months due to China tightening its grip on a supply stream that has historically accounted for 80 per cent of the international stockpile.
“Developing a domestic source for tungsten is one of our top critical and strategic mineral priorities,” said Vic Ramdass, a Department of Defense representative, in a news release from the government agency on the matter. He added that tungsten was essential for aerospace, weapons, ground vehicles and multiple U.S. defense systems.
Read more: Antimony recovery results from NevGold’s Limo Butte project exceed expectations
Major fundraising completed in tandem with award
There’s more. Guardian also just announced that it has completed a US$21-million-dollar capital raise led by the company’s top shareholder UCAM Limited. Accomplishments of this calibre are immense for any junior miner.
In addition to Pilot Mountain, the funding will also benefit the company’s Tempiute tungsten project 250 miles southeast of its of flagship asset. Funds will help forward a drill campaign there aimed at delineating an open pit resource. This past-producing asset was the number tungsten mine in the country decades ago.
The junior also recently expanded its tungsten mining footprint in Nevada by acquiring a series of claims forming a new project to the north of its primary site. Pilot North sits about 15 kilometres above Pilot Mountain and is comprised of three past-producing mines from the WWII era.
Guardian has been completing extensive drilling at Pilot Mountain in recent weeks. Company shares have risen by over 130 per cent this year on the OTC Markets.
Read more: NevGold’s latest Nevada drill results show exceptional gold mineralization
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