Red Mountain expands US critical minerals footprint with Pioneer tungsten option

• Red Mountain secures exclusive option over the Pioneer tungsten project in Montana

• Historical drilling and surface work indicate potential for widespread tungsten mineralisation

• The project notably sits adjacent to claims held by the $9.2 billion market-capped Almonty Industries

Special Report: Red Mountain Mining has secured an exclusive option agreement to acquire the Pioneer tungsten project in southwest Montana.

The proposed acquisition aligns with the company's focus on securing critical mineral assets in Tier-1 mining districts across the US and Australia.

It comes at a time of particularly strong tungsten prices, driven by supply constraints and rising global demand due to the metal’s strategic application.

Notably, the US Government is actively looking to strengthen domestic supply chains for tungsten.

To support its US-focused critical metals growth strategy, Red Mountain Mining (ASX:RMX) has also conducted a $1.6 million placement and entered an agreement for a stand-by funding facility totalling another $1.0 million.

Pioneer in focus

Pioneer covers 2000 hectares and comprises three primary prospect areas: Greenstone, Mammoth and Lost Creek.

The trio of prospects are located along the eastern margin of the Cretaceous Mount Torrey Batholith and feature massive garnet skarns measuring up to 25m thick.

These geological formations contain tungsten mineralisation in the form of scheelite, with local assays exceeding 0.5% WO3.

Notably, the project sits within the Pioneer Mountains mining region and lies adjacent to claims held by the $9.2 billion market-capped Almonty Industries (ASX:AII) last November.

Almonty’s ground hosts the Gentung tungsten deposit totalling 6.83Mt at 0.315% WO3, as well as the historical Ivanhoe and Lost Creek mines which historically produced 680,000 tonnes of tungsten ore.

According to Red Mountain, historical drilling at Pioneer also indicates the potential for broader mineralisation.

At Greenstone, four shallow drillholes intersected mineralisation along their entire length, with results including 10.7m at 0.48% WO3, 5.8m at 0.43% WO3 and 7.6m at 0.42% WO3.

These intercepts are believed to be comparable to drill results at Gentung.

At Mammoth, a 16-metre adit has intersected scheelite-bearing garnet skarn mineralisation about 2.5m thick. While the Mammoth claims have not been previously drilled, management believes the ground has potential to host a concealed orebody similar to Gentung.

Meanwhile, the Lost Creek prospect lies 600m along strike from its namesake historical mine which produced 19,000 tonnes at an average grade of 0.18% WO3.

Map showing the Pioneer tenure in proximity to Almonty’s ground. Source: Red Mountain Mining

Strategic metal

Tungsten is best known for having the highest melting point of any pure metal and for its hardness, density and thermal resistance.

It is commonly used in high-performance cutting tools and wear resistant metal parts, as well as high-temperature components in aerospace and industrial furnaces.

Management noted that the US Government is actively seeking to secure reliable domestic supply of tungsten as well as other metals critical to the US economy.

Its price has surged to near-record levels, trading at more than US$3,000/MTU compared with less than US$900/MTU at the end of 2025.

Management believes this sharp increase has been driven in part by China shifting from a net exporter to a net importer of the metal, alongside growing demand for tungsten’s strategic applications.

Transaction terms and funding

Under the option agreement, Red Mountain will pay $30,000 in cash to commence a 30-day due diligence period. Upon exercising the option, a further $90,000 will be payable to the vendor.

The deal also involves subsequent staged annual payments and a potential $1.8m final outlay for full ownership.

Meanwhile, the company’s $1.6 million placement is being completed at an 11.5% discount to the last closing price of 1.9c per share.

Participants will receive one unlisted option for every two shares subscribed, exercisable at 5c and expiring at the end of 2028.

Separately, Red Mountain has executed an agreement with Strategic Asset Capital for a stand-by funding facility of $1.0 million, subject to shareholder approval.

The company expects to define drill targets at Pioneer once the 30-day due diligence period is concluded.

This article was developed in collaboration with Red Mountain Mining, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.