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(Sharecast News) - Guardian Metal Resources announced on Thursday that it has signed a binding letter of intent with Hinkinite Resources to acquire an option on the Tempiute tungsten mine and mill in Nevada, located 240 kilometres north of Las Vegas.
The AIM-traded firm said the mine, known historically as the Emerson Tungsten or Black Dog mine, aligned with its strategic focus on mineral exploration and development in Nevada.
It said the option acquisition was contingent on it completing satisfactory due diligence on the Tempiute project within 90 days following the signing of the letter of intent.
Hinkinite Resources, based in Utah, specialises in prospecting and developing a diverse portfolio of mineral deposits, including tungsten, gold, silver, and industrial materials across the western United States.
"In the three years since the Company acquired the Pilot Mountain project, the Guardian team has spent countless hours building its knowledge in the tungsten sector, and forging key relationships across both the US and globally," said chief executive officer Oliver Friesen.
"Through this, we have come to the conclusion that the macro setup for this key defence metal warrants our investment decision to gain more exposure to this critical commodity.
"Tempiute, being a significant tungsten producer as recently as the late 1980s, along with the extensive in-place infrastructure and its location almost entirely within patented, wholly owned claims, makes it an extremely attractive project."
Friesen said that while on a recent site visit, he was able to tour Tempiute with the optionor, adding that he was "very impressed" by what the project offered.
"If due diligence is satisfactory and we proceed with the Option, Tempiute, which is located only 290 kilometres by road from our flagship Pilot Mountain project, would add a further significant tungsten project to the Guardian Metal portfolio.
"We look forward to providing the market with further updates as the due diligence work concludes."
At 1326 GMT, shares in Guardian Metal Resources were down 3.23% at 24p.
Reporting by Josh White for Sharecast.com.