GNWT agrees to sell Mactung property to Fireweed Zinc Ltd.

Press Release

June 7, 2022

The Government of the Northwest Territories (GNWT) has accepted a letter of offer from Fireweed Zinc Ltd. (Fireweed) to acquire its Mactung property.

The GNWT took ownership of Mactung in 2015 as part of the insolvency of North American Tungsten Corporation Limited in order to protect the economic value of the property’s tungsten deposit for future development.

The GNWT’s goal has always been to return the property to the private sector once its commodity value recovered.

Tungsten prices have improved significantly since 2015 and Mactung hosts one of the world’s highest grade deposits.

Tungsten is a specialty metal with unique marketing and supply chain characteristics. It is classified as a critical metal of strategic importance to many nations including Canada and the United States.

The GNWT has kept Mactung regulatory authorizations and mineral interests in good standing.

The initial approach by the GNWT and federal government to jointly sell the Cantung Mine and Mactung property concluded on March 30, 2022 without receipt of an acceptable bid.

No concessions, subsidies or incentives were negotiated with Fireweed as part of the transaction.

Quote(s)

“Our priority has been to find an established and experienced operator whose vision and business model will maximize benefits to Northwest Territories (NWT) residents and businesses in the region and our territory overall. I am pleased to welcome Fireweed to the NWT’s mining community and look forward to them advancing this exciting critical minerals project.”

– Caroline Wawzonek, Minister of Industry, Tourism and Investment

Quick facts

The GNWT purchased the Mactung asset for $4.5 million.
The GNWT has incurred $346,521 to maintain the Mactung property and its assets; and conduct Indigenous engagement and geological research.
An additional $129,388 was incurred to jointly market Cantung and Mactung with Canada.
Under the terms of a Letter of Intent, the GNWT has agreed to sell 100% ownership of the Mactung property for a total purchase price of $15,000,000.