Blackheath Resources Inc. is pleased to announce that the Company has entered into a definitive agreement for an option to acquire a 100% interest in the Adoria Tungsten/Tin Project.
The acquisition completes the Company's immediate goal of holding high-quality, past-producing tungsten mines with the potential for development of significant additional tungsten resources in northern Portugal. Blackheath now holds the rights to five licences including the Covas, Borralha, Bejanca, Vale das Gatos and Adoria historic mines.
The Adoria mines surrounding the village of Cerva were important producers of tungsten from 1906 until their closure in 1972 as a result of depressed tungsten prices. At their peak, during World War II, over 5,000 people worked in the mines to extract the tungsten mineral wolframite together with lesser amounts of the tin mineral cassiterite. Vein structures in the region are mostly sub-horizontal and similar to those at the producing Panasqueira Tungsten Mine. The Adoria Project is held in the Limoes exploration concession which covers an area of 62.6 square kilometres located about 90 kilometres northeast of Porto in northern Portugal.
Blackheath's President & CEO, James Robertson, commented, "We are pleased to complete our current portfolio with this historic tungsten producer under favourable terms. Work will commence in early 2014 and will initially include mapping and sampling over prospective areas of the permit."
Blackheath holds the option for Limoes from Mineralia - Minas, Geotecnia e Construcoes, Lda. ("Mineralia") - through an exploration concession (the "Concession") granted by the Government of Portugal. The Concession is granted for a period of up to five years, after which it may be converted into a preliminary exploitation licence and a final exploitation licence successively. Under the Agreement, Blackheath will undertake to fulfill the terms of the Concession, include a minimum exploration expenditure of EUR220,000 during the first two years. Blackheath will also pay Mineralia EUR100,000 upon the grant of a preliminary exploitation licence and a further EUR1 million upon mine production and the grant of a final exploitation licence, at which time Blackheath will hold a 100% interest in the project.