Blackheath Resources (BHR.V) has announced it officially acquired a 70% interest in the Covas tungsten project in northern Portugal from Avrupa Minerals (AVU.V) as it has met the requirements in the initial joint venture agreement. Additionally, the company has re-negotiated the joint venture agreement and can now earn an additional 15% in the project by spending 1.65M EUR on exploration. This seems to be a more interesting deal compared to the previous agreement, where the 85% ownership could only be reached after completing a feasibility study.
As Blackheath has started its exploration activities again at Covas, we expect the company to reach the 75% ownership by the end of this year as we expect more than 320,000 EUR to be spent on the property this year. Blackheath is currently conducting a geophysical IP program to test the skarn ring and to find out if a large tungsten bearing zone could be located in the centre of this skarn ring. The information from the IP survey will be used for a Phase III drill program which should start in June.
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Disclosure: The author holds a long position in Blackheath Resources. Blackheath is a sponsor of the website. Please see our disclaimer for current positions.
