Golden Metal Seeks to Secure US Funding for Pilot Mountain Tungsten

30 June 2023 13:38
Having just potentially secured an off-take partner, the explorer is now ramping up efforts to secure funding for its flagship tungsten project.

With extensive exploration set to kick off in the near future and the Company already potentially securing offtake for the flagship project, Golden Metal Resources is now setting out its strategy to secure non-dilutive government-supported grant funding to expedite exploration and development of its flagship 100% owned Pilot Mountain Project.

Seeking Funds

Golden Metal is now working closely with its Strategic United States Government Advisor Mrs Chang Turkmani to search out applicable grants for Pilot Mountain, with the Company now commencing the application process for a short-list of relevant grant programmes that Golden Metal Resources is eligible for.

The explorer believes that Pilot Mountain hosts the largest undeveloped tungsten resource in the United States, and while it is still too early to say if this is the truth, early signs have been promising, with the Company now zeroing in on five undrilled exploration targets across the Project that could deliver a significant upgrade to its already considerable 12.53Mt @ 0.27% tungsten resource.

And with this resource, the Company is confident it is in a strong position for non-dilutive grant funding which would allow it to accelerate the exploration and development of Pilot Mountain.

A Critical Opportunity

Golden Metals’ confidence in being able to secure funding for Pilot Mountain stems from the fact that despite being included on the country’s critical minerals list, the United States currently has no domestic primary producers for tungsten.

The country currently imports most of its tungsten supply from China, but in an act to secure a safe supply of the critical metal due to its growing importance to the defence industry, the US Department of Defence is banning the use of Tungsten mined in China, Russia, North Korea and Iran in defence procurement from January 2026.

This move will mean that the country will have to look elsewhere to secure a supply of the critical metal and significantly grows GMET’s opportunity to secure funding as the Company works to establish Pilot Mountain as the only domestic US primary mined source of tungsten.

Looking Ahead

The Company said that while it is not currently able to provide clearer details on its funding pursuits, its appointment of Mrs Turkmani should be a strong indication to the market of its dedication to securing funding.

“The time for the United States to reduce its reliance on other countries for their imports of critical and defence metals is now, and we at Golden Metal strongly believe that as 100% owners of what we consider is the largest undeveloped tungsten deposit located on US soil, we can be a part of this urgent process,” Oliver Friesen said.

“Targeting non-dilutive funding is a critical focus of the Company. However, minimal updates will be given for the time being, as such disclosure may interfere with our ongoing endeavours in this regard. However, it is important for our investors to know that, while this key part of the business ticks away in the background, we will continue pushing forward exploration and development across the portfolio at pace.”

GMET’s London Stock Exchange-listed share price is currently selling at 8.50 pounds (1:45 pm UTC+ 8 hours).

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