American Tungsten & Antimony (ASX:AT4) signs agreement to acquire US critical metals refinery
American Tungsten & Antimony has executed a binding share sale and purchase agreement with Nexus Metals LLC for the proposed acquisition of 100% of Del Sol Refining Inc, the owner of the Del Sol Refinery in Nevada and the White Spar Antimony Mine in Arizona.
Completion of the proposed transaction remains subject to shareholder approval, regulatory and third party approvals, exercise of the Del Sol option and the satisfaction or waiver of other conditions precedent.
Highlights
Del Sol is a constructed and permitted hydrometallurgical antimony flake refinery with approval to process up to 18,500tpa of feed.
The refinery has produced electrolytic antimony flake within the past 6 months but is not currently in production or operating continuously on a commercial basis.
The proposed acquisition includes the White Spar Antimony Mine, which has historically supplied the refinery.
AT4 plans to seek an increase in permitted processing capacity to 100,000 tons of ore per year and an extension of the permit scope to include tungsten refining.
AT4 reported a pro forma cash balance of $26.5M before costs and is targeting a Nasdaq listing in Q4 CY26.
According to AT4, the proposed acquisition forms part of its strategy to develop a vertically integrated domestic US tungsten and antimony supply chain under a hub and spoke model.
Under that strategy, the Dutch Mountain and Tennessee Mountain projects, via the Dutch Mountain Tungsten Concentrator, are intended to provide tungsten feed to the Del Sol Refinery, while feed from the White Spar Antimony Mine and the Antimony Canyon Project is intended to supply the refinery's antimony circuit.
AT4 states that the Del Sol facility occupies a 35 acre site containing processing buildings, laboratories, 3 phase power, dedicated water and onsite accommodation.
The existing hydrometallurgical infrastructure includes an autoclave, caustic leach systems and filter presses, which the company considers potentially applicable, subject to technical verification, to the front end processing of scheelite concentrates.
AT4 also confirms the refinery is not currently in production or operating continuously on a commercial basis.
Initial feed is expected to be sourced from the White Spar Antimony Mine and supplemented, where required, by third party purchases of antimony ore or concentrate on arm's length commercial terms.
The company states that, over time, it intends for its own deposits to provide the primary refinery feed.
AT4 Chief Executive Officer Casper Adson said:
“Based on Del Sol’s hydromet infrastructure, AT4 is immediately commencing planning for expansion into tungsten APT production with the aim of reducing US reliance on tungsten supply from Foreign Entities of Concern.”
Following completion of the proposed transaction, AT4 intends to undertake a detailed condition and readiness assessment of the existing autoclave, caustic leach, electrowinning and filtration circuits, complete any refurbishment identified through that assessment, confirm that the intended operating configuration is accommodated by the existing permit, recruit operating and laboratory personnel, secure initial feed, commission the facility and undertake a staged increase in throughput.
AT4 states that these timeframes are indicative and remain subject to completion of the proposed transaction, permitting, equipment availability and funding.
AT4 plans to expand production into Regulus II antimony metal ingot, antimony trisulphide, sodium antimonate and ammonium paratungstate.
According to the announcement, these products remain subject to process development, testwork and customer qualification, and there is no certainty they will be developed or qualified.
The proposed expansion into tungsten refining and the production of ammonium paratungstate will also require a separate permitting application.
AT4 states that the next disclosed activities include engagement with the Nevada Division of Environmental Protection regarding the proposed capacity expansion and tungsten refining scope, submission of the proposed permit application, commencement of studies for specialty antimony products, laboratory scale testwork for ammonium paratungstate development, geological mapping at White Spar and planning of a drill program targeting stibnite bearing veins, subject to completion of the proposed transaction where applicable.