VANCOUVER – If their were a “deal of the week award”, Woulfe Mining would be in the running for attracting investment from Warren Buffet to its Sandong tungsten-molybdenum project in South Korea. Not Buffet personally, but IMC International Metalworking Companies, a unit of Buffet’s Berkshire Hathaway.
Woulfe owns the former Sandong tungsten mine that was closed in 1992 due to low metal prices. It has since brought the project to the advanced exploration stage, commissioning a scoping study in 2010 and a feasibility study that is due out this year.
The deal between the two companies has IMC buying a 25% in Sandong for $35 million. IMC will advance $5 million to Woulfe as soon as the deal closes. Then IMC and Woulfe will form a 55:45 joint venture to build an ammonium paratungstate (APT) in Korea. They will invest $19.25 million and $15.75 million, respectively, in the plant. IMC has agreed to loan Woulfe the money for its share of the plant expenses (if Woulfe so desires) and to buy between 90% and 100% of the APT production.
Woulfe has set a production target for Q4 2012. Please visit WoulfeMining.com.