Northcliff Resources (NCF.TO) has announced the Todd corporation will invest C$5M in the company by acquiring shares at a price of C$0.36/share, which is a healthy premium above the closing price the day before the announcement. Todd Corp will also have the right to acquire an initial 11.5% interest in the Sisson project by investing $14 million on a staged basis, and can increase its stake to 21.5% after spending another $20M on the property.
The Sisson project has completed a feasibility study which outlines a production scenario of 557,000 MTU of tungsten per year and 4.1M pounds of molybdenum. This is the second investment in a tungsten junior company as Todd also participated in a placement of ASX-listed Wolf Minerals (ASX:WLF) which aims to re-open the Hemerdon tungsten project in the UK. Apparently Todd is convinced by the feasibility study at Sisson which indicates the project is feasible even though the head grade is just 0.073% WO3 which is low compared to 0.19% for Wolf Minerals’ reserves and the 0.78% grade of the Covas project owned by Blackheath Resources (BHR.V).
Disclosure: The author holds no position in Northcliff Resources or Wolf Minerals but might initiate a position in Wolf Minerals. The author has a long position in Blackheath Resources, and Blackheath is a sponsor of the website. Please see our disclaimer for current positions.