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Sirius Exploration has put the disappointment of the failed Njahill acquisition behind it and has announced that it has entered into an agreement with Judian Tungsten Group China to buy an initial 10% interest in the company with an option to increase that stake to 49%.

Tungsten, also known as Wolfram, is found in several ores including Wolframite (W03), and has the highest melting point and lowest vapour pressure of all metals. It is highly resistant to corrosion and has the highest tensile strength of any metal at temperatures over 1,650 degrees Celsius. These unique properties mean that Tungsten and its alloys are used extensively in high temperature applications such as steel in high-speed tools, light bulb/cathode-ray tube/vacuum tube filaments, in the metal-working/mining/petroleum industries, electrical contact points for car distributors, and shielding from X-ray targets.

China is the world’s largest producer of Tungsten and also holds the world’s largest accessible reserves. Tungsten ores are treated to produce a Wolframite concentrate, which is processed into the raw powder APT (Ammonium Para-Tungstate) which is typically traded in the market, before being reduced to a Tungsten metal powder which can then be used in final product applications.

Judian Tungsten Group China

The agreement announced today comprises an initial option, to be exercised within 3 months, for Sirius to acquire an initial 10% stake in Judian Tungsten Group China in exchange for around 27 million Sirius shares (£6 million at a 22p per Sirius share), plus £2 million in cash to be paid out of a future capital raising. The cash consideration can also be received in Sirius shares (issued at 22p per share) at Judian’s request. The agreement also includes 2 other options, the first to acquire a further 15% interest (taking holding to 25%) in Judian in exchange for Sirius shares at 22p per share, and the second to acquire a further 24% interest (taking holding to 49%) in Judian in exchange for Sirius shares at a price to be determined. The agreement has been agreed in principle, and Sirius will now proceed with
its due diligence of the Judian assets. Should the 10% acquisition proceed, the issuance of around 27 million Sirius shares would represent around 24% of Sirius’enlarged capital.