Rafaella to fast track Santa Comba Tungsten Project

By Trevor Hoey. Published at Jun 26, 2019, in Mining

Diversified mining group, Rafaella Resources Ltd (ASX:RFR) has received strategic support from Transamine Trading S.A in the development of the Santa Comba Tungsten Project in Spain.

This incorporates a marketing services and offtake agreement and equity investment of up to $1.5 million.

Founded in 1953 and headquartered in Geneva, Switzerland, Transamine is the world’s longest established independent and privately held commodities trading company specialising in non-ferrous raw materials production and trade.

As a cornerstone investor, Transamine must believe the project stacks up and has agreed to provide marketing and logistics services to Galicia Tin & Tungsten S.L. (GTT), the 100% owner of the project.

In terms of a heads of agreement negotiated in May, GTT is currently the subject of an agreed acquisition by Rafaella.

Rafaella is targeting Santa Comba as a development project capable of being fast-tracked to production and the group has received an offtake offer from H.C. Stark Tungsten GmbH (HCS) with associated development funding from the German government.

Highlighting the importance of this development for Rafaella, Executive Director Ashley Hood said, “The financial and strategic endorsement of such a well-respected and venerable trading house such as Transamine is a real vote of confidence for the Santa Comba Project and its potential.

“Transamine’s marketing and logistical support will be vital as the project ramps up production during its early stages and we look forward to working with Transamine in the years to come.”

Offtake agreements in place

The project also boasts proximity to deep-water ports and has considerable infrastructure already in place, including a partially completed process plant.

As part of the services agreement, Transamine will assist in facilitating the logistics for the delivery of the tungsten concentrate already under an offer by HCS and will acquire any additional concentrate not subject to the HCS offer on standard market terms.

Furthermore, Transamine Holdings and Investments, Hong Kong (THIL) has agreed to support Rafaella’s proposed $2.6 million equity raising with the commitment of $1 million followed by a further $500,000 upon the delivery of a positive feasibility study and the execution of the approved German government development funding.

The subscription agreement and marketing services and offtake agreement are subject to final documentation.

As a condition precedent of the project acquisition completion, Rafaella needs to raise $2.6 million, with Transamine committing $1 million and the remaining $1.6 million by institutional investors.

Santa Comba 5.1 million tonne resource estimate

As indicated below, the project, which is already permitted for underground and open pit mining, is located near the township of Santa Comba in Galicia, north-west Spain, and covers the seven kilometre long Santa Comba granite massif.

The Santa Comba project is already permitted for underground and open pit mining.

The project comprises several known prospects with a maiden near-surface Mineral Resource Estimate of 5.1 million tonnes of Inferred Resource grading 0.203% tungsten and 0.014% tin, and an underground Inferred Resource of 234,000 tonnes grading 0.95% tungsten and 0.28% tin located at the historic Mina Carmen underground mine.

The project also offers significant upside potential with a recently announced near-surface Exploration Target of between 16.2 million tonnes and 48.6 million tonnes of prospective rock, grading between 0.15% and 0.23% tungsten.

As is usually the case at this stage, the potential quantity and grade of the Exploration Target is conceptual in nature.

There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration work will result in the estimation of a Mineral Resource.

Consequently, Rafaella’s proposed exploration program will be eagerly anticipated.

View Our Investment Portfolios

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why Finfeed.com is Australia’s leading small cap publication

Founded seven years ago, Finfeed.com is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise.

Finfeed.com provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more.

Finfeed.com is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!