Terra Uranium Limited (ASX:T92) has entered into a binding agreement to acquire 100% of LCT Metals Pty Ltd, securing two strategic exploration licenses in New South Wales' established New England Tin Province. This acquisition represents a significant diversification beyond the company's existing uranium portfolio, adding high-grade tin and silver assets to its critical minerals holdings.
Historic Mining Region Yields Exceptional Surface Results
The acquisition encompasses three key projects containing historically productive mining assets with remarkable surface sampling results:
Ottery Tin Mine
The Ottery Tin Mine stands as New England's largest historical hard rock tin producer, with past production of approximately 2,700 tonnes of tin oxide at an average grade of 2% Sn. The mineralisation occurs in a series of five lodes hosted by an intrusive porphyry unit, surrounded by wide zones of hydrothermal alteration.
Notably, the Ottery tenement is positioned just 10km from the Taronga Tin project being developed by First Tin (29.9% owned by MLX). Taronga currently holds a resource of 23.2Mt at 0.16% Sn, highlighting the established tin potential of the immediate region.
Castle Rag Silver Project
The Castle Rag Silver Project has a documented history of production, with estimates suggesting historical output of approximately 48 tonnes of silver and 692 tonnes of lead. Surface sampling across the project area has revealed exceptional silver grades, with one sample returning 1,670 g/t silver.
Additional notable surface samples from Castle Rag include:
- 445 g/t silver with 1.12% copper
- 210 g/t silver with 1.19% lead
- 120 g/t silver with 5.25% lead and 0.41% zinc
Mole River Silver and Tin Project
The Mole River Project presents a substantial exploration opportunity with a 13km strike length, of which 6km contains known mineralisation. The project area hosts both tin-rich and silver-rich zones.
Surface sampling at Mole River has returned remarkable grades, including:
- 64% tin
- 12% tin
- 5.21% tin
- 147 g/t silver
- 97 g/t silver with 4.1% lead
| Project | Highlight Surface Samples |
|---|---|
| Mole River | 64% Tin, 147 g/t Silver, 12% Tin, 5.21% Tin |
| Castle Rag | 1,670 g/t Silver, 445 g/t Silver with 1.12% Copper, 210 g/t Silver with 1.19% Lead |
Strategic Positioning in a Resurging Tin Market
The acquisition positions Terra Uranium to benefit from strengthening tin prices, which recently reached $35,900 per tonne – a four-month high. Several factors are contributing to this positive market environment:
-
Supply Constraints: Geopolitical disruptions and production issues are affecting major tin producers in DR Congo, Indonesia, and Myanmar, tightening global supply.
-
Technology Demand: Increasing investment in AI hardware technologies is supporting demand for tin, which serves as a critical component in electronic manufacturing.
-
Regional Context: The New England region of NSW represents one of Australia's most important historical tin-producing areas, with numerous high-grade occurrences.
This development comes amidst a broader context of Australia's lithium ambitions and challenges in the critical minerals sector, demonstrating the country's growing focus on strategic resources.
Companion Capital Raise
In conjunction with the acquisition, Terra Uranium has secured firm commitments from sophisticated investors for a $500,000 placement at $0.04 per share. The funds raised will support:
- Acquisition costs for LCT Metals
- Ongoing exploration activities
- General working capital requirements
The placement includes one free unquoted option (exercisable at $0.09) for each new share issued, with option issuance subject to shareholder approval at an upcoming meeting in May 2025.
Understanding Tin's Critical Role in Technology
Tin is recognised as a critical metal for modern technology, playing an essential role in electronics manufacturing, particularly as the primary component in solder used for electronic components and circuit boards.
Growing Demand from Technology Sector
With the rapid growth in AI hardware and data centers, tin demand is expected to increase significantly. The metal's properties make it indispensable for creating reliable electrical connections in circuit boards, with no viable substitutes currently available for many applications.
Supply Challenges
Unlike many industrial metals, high-grade tin deposits are relatively rare worldwide. Production from traditional sources has been declining, creating supply challenges that support higher prices. Key facts about the tin market include:
- Major global producers in DR Congo, Indonesia, and Myanmar are facing production constraints
- Alphamin Resources, operating one of the world's largest tin mines, recently evacuated its operation in DR Congo due to insurgent militant groups
- Export permits from Indonesia have faced delays following bureaucratic breaks
- Myanmar's Man Maw mine, a significant tin source, has not yet been reinstated amid political conflicts
These supply constraints come at a time when demand for tin in electronics manufacturing continues to grow, creating favourable market dynamics for new tin production. This situation mirrors broader trends seen in mining investment in the Middle East, where strategic mineral development is gaining momentum.
Acquisition Structure
The acquisition structure includes:
- 2,444,444 T92 shares (subject to voluntary lock-up periods)
- 1,222,222 unlisted options (exercise price $0.09, expiry December 2026)
- $40,000 cash (including $20,000 for reimbursement of security deposits)
The consideration shares will be subject to the following voluntary lock-up periods from the date of issuance:
- 25% for 3 months
- 25% for 6 months
- 50% for 12 months
Next Steps and Exploration Plans
Terra Uranium plans to immediately compile and analyse historical data following completion of the acquisition, with field exploration scheduled to commence in the second quarter of 2025. The company will focus on validating the numerous high-grade mineral occurrences previously identified across the project areas.
The initial exploration program will include:
- Compilation of historical and existing data
- Field mapping and sampling to validate identified mineral occurrences
- Planning of follow-up exploration activities
For the longer term, the company aims to establish JORC-compliant resources across its tin and silver assets, capitalising on the historic work already completed in these well-established mining areas.
Dual Exposure to Critical Minerals
Terra Uranium now offers investors exposure to both:
-
Critical minerals in Australia: High-grade tin and silver assets in an established mining region with exceptional surface samples and historic production.
-
Strategic uranium assets in Canada: The company retains its portfolio of uranium deposits and mining exploration projects in Saskatchewan's Athabasca Basin, positioning it to capitalise on the growing recognition of nuclear power's role in decarbonisation.
With strong financial backing from the recent placement, Terra Uranium is well-positioned to advance exploration on these high-potential assets while maintaining optionality across multiple critical minerals markets. The company's diversified approach to critical minerals exploration provides shareholders with exposure to both the resurging tin market and the strengthening uranium sector.
This strategic diversification also provides investors with an alternative to traditional precious metals investments, complementing options like gold, which has seen significant price movements in recent market conditions.
Terra Uranium Executive Chairman, Andrew Vigar, commented: "The T92 exploration strategy has been expanded from just uranium to tin, silver and gold in Australia. Whilst we will retain our valuable Canadian uranium assets we have taken the option to make an acquisition in the prolific New England Tin, Silver, Antimony and Gold province. This is an exciting time for T92; we thank new and existing shareholders for their continued support and look forward to keeping all shareholders informed of these new targets."
Looking for the next high-potential ASX discovery?
Discovery Alert's proprietary Discovery IQ model instantly identifies significant mineral discoveries, like Terra Uranium's strategic tin and silver acquisition, delivering real-time notifications that create actionable trading opportunities before the market catches on. Explore historic discovery returns and begin your 30-day free trial at https://discoveryalert.com.au/discoveries/.
