REG - Guardian Metal Rsrc. - Agreement to Purchase Pilot Mountain Water Rights

Guardian Metal ResourcesAnnouncement

11/12/2024 07:00

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RNS Number : 5926P  Guardian Metal Resources PLC  11 December 2024

11 December 2024

Guardian Metal Resources plc

('Guardian Metal' or the 'Company')

Agreement to Purchase Pilot Mountain Water Rights

Guardian Metal Progresses Towards its Goal to Develop Tungsten Production in
the USA

Guardian Metal Resources plc (AIM: GMET, OTCQX:GMTLF), a mineral exploration
company focused on tungsten within Nevada, USA, announces an important update
regarding its 100% owned flagship Pilot Mountain Project ("Pilot Mountain" or
the "Project") located in the Walker Lane Mineral Belt in Nevada, USA. The
purchase of water rights marks a pivotal Project milestone as we progress
toward our goal of supporting domestic U.S. production of tungsten, which is a
critical industrial and military metal essential to national security, and
reinforces the Company's commitment to rapidly advancing its projects within
the USA.

 

A definitive water rights purchase and sale agreement has been executed
between Pilot Metals Inc. ("Pilot"), a wholly-owned subsidiary of Guardian
Metal, and Belmont Resources Inc. ("Belmont") for water Permit 87850 located
in the Kibby Basin Valley, Nevada, which is directly adjacent to the Company's
Pilot Mountain Project.

Highlights:

§   Water rights over Permit 87850 include production of 1,447.94 acre feet
annually and consumptive use of 130.055 acre feet annually for mining, milling
and domestic use per year.

 

§    Water access from Permit 87850 will be from the Company's 100% owned
millsite claims which are located less than 3km from where projected Pilot
Mountain mining infrastructure would be built.

 

§     Purchase of Permit 87850 represents a significant development and
derisking milestone for the Project as the use of water is essential for
supporting mine development and ongoing operations as the Project progresses.

 

§    With power infrastructure available nearby, well-maintained roads
connecting to the site, and now with the purchase of water rights, the Project
represents a low-capex option for domestic U.S. tungsten production.

 

Commercial Terms

The purchase price for Permit 87850 includes US$350,000 which has been paid to
Belmont, and a further US$200,000, which is payable at completion on or before
31 January 2025. On completion, 100% of the rights held by Permit 87850 will
be transferred to Pilot.

Oliver Friesen, CEO of Guardian Metal, commented:

"Water rights are a crucial requirement for mine development and ongoing
operations. When the opportunity arose to purchase the water rights within the
basin directly adjacent to Pilot Mountain we jumped at the opportunity as this
represents a significant derisking step for our flagship asset. With these
rights now in hand, we push forward with further confidence towards our goal
of being the only domestic U.S. miner of the critical defence metal,
tungsten."

 

This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014 (which forms part of domestic UK law pursuant to the
European Union (Withdrawal) Act 2018).

Forward Looking Statements

This announcement contains forward-looking statements relating to expected or
anticipated future events and anticipated results that are forward-looking in
nature and, as a result, are subject to certain risks and uncertainties, such
as general economic, market and business conditions, competition for qualified
staff, the regulatory process and actions, technical issues, new legislation,
uncertainties resulting from potential delays or changes in plans,
uncertainties resulting from working in a new political jurisdiction,
uncertainties regarding the results of exploration, uncertainties regarding
the timing and granting of prospecting rights, uncertainties regarding the
timing and granting of regulatory and other third party consents and
approvals, uncertainties regarding the Company's or any third party's ability
to execute and implement future plans, and the occurrence of unexpected
events.

Actual results achieved may vary from the information provided herein as a
result of numerous known and unknown risks and uncertainties and other
factors.

For further information visit www.guardianmetalresources.com
(http://www.guardianmetalresources.com) or contact the following:

 Guardian Metal Resources plc                 Tel: +44 (0) 20 7583 8304

 Oliver Friesen (CEO)
 Cairn Financial Advisers LLP                 Tel: +44 20 7213 0880

 Nominated Adviser

 Sandy Jamieson/Jo Turner/Louise O'Driscoll
 Shard Capital Partners LLP                   Tel: +44 (0) 20 7186 9000

 Broker

 Damon Heath/Erik Woolgar

 

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