November 21, 2008

Hunan Nonferrous and American Tungsten ink strategic pact

Canadian press reported that Chinese non ferrous major Hunan Nonferrous Metals Corp has forged a strategic alliance by purchasing a stake in Vancouver based North American Tungsten Corp.

North American Tungsten announced a private placement to sell approximately 13.4 million units at a price of CAD 1.45 as part of a strategic alliance. The funds will be used for the development of Mactung, which is expected to have a feasibility study completed in the third quarter of 2008.

Mr Stephen Leahy CEO of North American Tungsten Corp at PDAC had highlighted China’s tight grip on the tungsten market given its 85% share of global production. He said that “There has been no exploration in the western world for several decades.’

North American Tungsten produces 4% of the world’s supply of the specialty metal used in tools and steel alloys and has both a producing project Cantung near the Yukon-Northwest Territories border and the biggest high grade deposit Mactung nearby.