Red Mountain Mining has signed an exclusive option agreement to acquire the Pioneer tungsten project in Montana, US, positioning the company to capitalise on a global supply crunch for the critical metal.
Red Mountain has agreed to pay US$30,000 payable in cash upon commencement of the 30-day due diligence period. Upon exercising the option to acquire the project, US$90,000 will be payable to the vendors. Under the agreement, Red Mountain will be required to pay annual instalments on the anniversary date of the agreement.
The 2,000-hectare project sits in the Pioneer Mountains mining region, directly adjacent to land recently acquired by Almonty Industries.
The project comprises three areas along the eastern margin of the Mount Torrey Batholith, where locally, massive garnet skarns, up to 25m thick, are present.
The move aligns with the US government’s push to secure domestic supplies of tungsten, a metal vital for defence, aerospace, and high-tech manufacturing, at a time when prices are hovering near record highs of over US$3,000 per MTU.
Historical data from the Pioneer Project suggests significant potential. At the Greenstone prospect, one of three key areas within the claim, historical drill holes were mineralised along their entire lengths.
High-grade results include intercepts of 10.7 metres at 0.48 per cent tungsten and 7.6 metres at 0.42 per cent tungsten, figures that mirror the nearby 6.8-million-tonne Gentung deposit.
Red Mountain is currently conducting a 30-day due diligence period. Should the outcome be positive, the company expects to move rapidly toward defining shallow drill targets.
To fuel this expansion and its existing Australian projects, the company has successfully closed a AU$1.6 million placement. RMX has also secured a AU$1 million stand-by funding facility, providing the board with significant flexibility to draw capital as needed.
The company noted that the project is a consistent fit with its strategy of building a portfolio of high-quality critical minerals in Tier-1 districts.
Tungsten has seen a dramatic price surge since late 2025, driven by China shifting from being a net exporter to a net importer.
With the metal’s unique ability to withstand extreme heat and its essential role in tungsten carbide tools, Red Mountain’s entry into the Montana district marks a timely pivot into the high-demand critical minerals space.
