Pinnacle targets US tungsten with five Utah projects

• Planned APT Tungsten acquisition offers exposure to five Utah projects covering 199 claims
• Hero project will take exploration priority following a September visit identifying outcropping skarn and historical workings
• Fieldwork scheduled for January, subject to acquisition completion, permits and access requirements

Special Report: Pinnacle Minerals has outlined plans to explore historical tungsten districts in Utah as it progresses the proposed acquisition of APT Tungsten.

APT holds an exclusive option over five early-stage projects spanning about 4000 acres: Hero, Lone Pine, Trout Creek, Desert Flower and Super W.

Pinnacle Minerals (ASX:PIM) managing director Bill Witham said the proposed acquisition of APT Tungsten represented exposure to a critical mineral with growing importance in the US.

“The Utah portfolio offers a number of early-stage exploration opportunities supported by historical tungsten workings and geological information, while our existing projects in Australia and Canada continue to provide additional optionality,” he said.

“Our immediate priorities are to progress the acquisition through the necessary approvals, prepare for initial exploration in Utah and continue evaluating the most appropriate pathways to advance our broader portfolio.”

Hero leads the exploration queue

Pinnacle has selected the Hero project, also known as House Range, as its initial priority after a September site visit identified extensive outcropping skarn, historical workings and mining equipment.

The project covers 52 claims in Utah’s historical Notch Peak tungsten district, where scheelite occurs in skarn along contacts between an intrusive complex and carbonate rocks.

Pinnacle says modern exploration has not tested the eastern contact’s down-dip extension beneath thin sedimentary cover.

At Lone Pine, selective May 2026 rock-chip and grab samples collected by Burgex for APT Tungsten returned 0.69% to 12.25% tungsten, equivalent to 0.87% to 15.45% tungsten trioxide.

Pinnacle is planning its own validation sampling once the acquisition is complete. None of the five projects holds a JORC mineral resource or exploration target.

Pinnacle Exploration Consultant pointing out the historical processing plant at the Hero Project at House Range Utah. Image supplied.

Scrip deal and proposed funding

Pinnacle proposes to acquire 100% of APT in an all-script transaction of 33,333,333 ordinary shares at a deemed value of 4.5c each, plus 33,333,333 performance shares.

The performance shares convert if Pinnacle’s volume-weighted average share price over 20 consecutive trading days reaches 9 cents, otherwise, they lapse three years after completion.

Placement investors will also receive one attaching option for every two shares, exercisable at 8c until August 22, 2028.

Pinnacle must also repay APT’s US$254,094 loan plus accrued interest. Retaining all projects entails up to US$2.912m in anniversary payments over three years, a US$1m minimum exploration commitment and a 2% net smelter return royalty.

There is also potential for additional milestone payments depending on the definition of formal resource estimates.

Tungsten’s supply-security challenge

Tungsten supports industrial demand as well as defence applications. The US Geological Survey estimates cemented carbide cutting and wear-resistant parts account for 60% of US consumption, serving construction, metalworking, mining and drilling. China supplied an estimated 79% of world mine output in 2025. [1]

China’s export restrictions have tightened Western supply. Argus reported European ammonium paratungstate prices had risen nearly 500% year-on-year by August 2026, although its Rotterdam assessment fell to US$2780–3100 per metric tonne unit on August 11 as buyers resisted higher costs. [2]

Argus forecasts primary tungsten demand growth of 2.6% annually to 130,000t by 2040 in its base case. [3]

Its base-case ammonium paratungstate forecast rises from US$2555 per metric tonne unit in 2026 to US$2870 in 2028, before easing to US$2305 in 2030 as supply expands. [3]

Subject to completion, permits and access, Pinnacle is looking to begin mapping, validation sampling, ultraviolet scheelite surveys and metallurgical sample collection to define drill-ready targets in January 2027.

This article was developed in collaboration with Pinnacle Minerals, 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.

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