Rafaella Resources Ltd. has entered into an agreement to acquire 100% of the shares of the private Spanish company Galicia Tin & Tungsten (GTT), which owns the mining licenses comprising the Santa Comba tin and tungsten project in northwest Spain. To support the development of Santa Comba, Rafaella has proposed a share placement to raise a targeted $2.6 million at 20 cents per share.

Located close to deep-water ports, the Santa Comba project is permitted for both underground and open-pit mining. A recently discovered, large, near-surface resource on the property, amenable to open-pit mining, remains mostly undrilled. Significant infrastructure is in place, according to Rafaella Resources, including an underground access ramp and an existing processing plant, which is near completion.

GTT holds 15 granted mining licenses, valid until 2068. Galicia is a top-tier mining jurisdiction and the region is well-known for being rich in tungsten and tin. The Santa Comba underground mine produced significant quantities of tungsten and tin between 1980 and 1985, before becoming uneconomic due to low metal prices. The recent increase in the prices for these metals has sparked renewed interest in the region.

Rafaella Resources has secured an offtake and debt-financing agreement with a German-based consumer, H.C. Clark Tungsten GmbH, subject to the completion of a positive feasibility study.