Perpetual Resources Eyes US Government Funding for Nevada Tungsten Project
Key Takeaways
- Perpetual and GreenMet are assessing multiple US Government funding pathways for Nevada Scheelite, but nothing has been secured, approved or applied for and no dollar amounts are disclosed.
- From 1 January 2027, DFARS amendments bar defence contractors from using tungsten sourced from China, Russia, North Korea or Iran, while China produces about 80% of global mine supply.
- The funding push targets the US Department of War's Office of Strategic Capital and Department of Commerce initiatives, with the aim of reducing reliance on shareholder capital.
- The project has four patented claims, more than 2,100 metres of underground drifts, 400+ historical drill holes and 62 new claims covering about 1,272 acres.
- No Mineral Resource exists yet, and maiden drilling is planned for late 2026, so the funding case rests on unverified historical results such as 7.01 metres at 1.95% WO₃.
US Government funding strategy advances for Nevada Scheelite
Perpetual Resources (ASX: PEC) and Washington D.C.-based strategic advisor GreenMet are assessing multiple potential US Government funding and financing pathways for the Nevada Scheelite Tungsten Project in Mineral County, Nevada. No funding has been secured, approved or applied for, and the announcement discloses no dollar amounts.
GreenMet was appointed in August 2026 (ASX announcement dated 6 August 2026) and has since commenced engagement with US Government, investment and critical minerals supply-chain stakeholders. The company describes initial interest in the project as “encouraging”.
The aim is to accelerate the project while minimising reliance on shareholder capital. For you as an investor, that matters because any Government support could reduce how much new equity the company needs to raise to advance the project.
Julian Babarczy, Executive Chairman
“The progress since appointing GreenMet has been very encouraging…”
“…We are working to position Nevada Scheelite within the US domestic tungsten supply chain…”
Pathways under assessment
GreenMet is assessing which mechanism, or combination of mechanisms, best suits the project’s stage of development. Current areas of focus include:
- Potential US Government support for exploration, resource definition, metallurgical testwork, engineering and other technical work.
- Potential Government financing mechanisms for later-stage development and construction, subject to the project successfully advancing through technical and economic studies.
- Current and emerging tungsten-specific opportunities within the US defence and critical minerals funding landscape.
- Complementary strategic investment, supply-chain and potential offtake arrangements that could form part of an integrated funding solution.
The work has a particular focus on opportunities associated with the US Department of War and its Office of Strategic Capital, together with relevant initiatives administered through the US Department of Commerce. Perpetual says it wants to maximise access to available Government and strategic capital while preserving flexibility around the project’s future financing and offtake arrangements.
When big ASX news breaks, our subscribers know first
Why US tungsten supply is a strategic priority
The supply picture explains why Perpetual is targeting Washington. Key facts cited in the announcement:
- China accounts for approximately 80% of global tungsten mine production.
- The United States has had no domestic tungsten mine production since 2015, relying on imports and recycled material to meet demand.
- From 1 January 2027, amendments to the US Defense Federal Acquisition Regulation Supplement (DFARS) will prohibit defence contractors from supplying tungsten products containing material mined, refined, separated, melted or produced in China, Russia, North Korea or Iran.
Perpetual expects this change to increase demand from US defence supply chains for tungsten from secure jurisdictions. That is the company’s expectation, not a guaranteed outcome.
What tungsten is and why it matters
Tungsten is a metal designated a critical mineral by the US Government. It is used in defence, aerospace, cutting tools and advanced manufacturing.
When a country has no domestic mine production and faces sourcing restrictions on supply from certain countries, projects inside its borders become more attractive to government funders. That is the logic behind Perpetual’s approach.
Brownfields credentials behind the pitch
Perpetual believes Nevada Scheelite has attributes that distinguish it from many earlier-stage US critical minerals projects. “Brownfields” refers to a site with existing mining history and infrastructure, rather than a greenfield site with none.
| Asset feature | Detail | Why it matters |
|---|---|---|
| Patented mining claims | Four patented mining claims | Full private ownership of the mineral and surface rights |
| Underground development | More than 2,100 metres of underground drifts, plus existing shafts | Substantial existing underground development |
| Historical database | More than 400 drill holes, plus geological sections and mine plans | Extensive historical technical dataset |
| Past production | Approximately 328,747 short ton units of WO₃ at approximately 1.1% WO₃ (1937 to 1957) | Historical role as a US tungsten producer |
| New claims | 62 new lode mining claims staked in September 2026, covering approximately 1,272 acres | Expands the project area to more than 15 times the original patented claim area |
Recent progress includes a review of historical Union Carbide drilling, reported on 31 August 2026. It identified tungsten intervals in 22 of the 42 holes reviewed at that stage, including:
- 7.01 metres at 1.95% WO₃
- 7.59 metres at 1.50% WO₃
- 3.81 metres at 2.01% WO₃
These are unverified historical results, true widths are unknown, and they do not establish a Mineral Resource.
Drew Horn, GreenMet Founder and Chief Executive Officer
“…Tungsten is receiving significant attention in Washington, and we believe Nevada Scheelite has characteristics that make it highly relevant to the United States’ objective of rebuilding secure domestic supply…”
The caveat is important. The project remains at an early stage and no Mineral Resource or Ore Reserve has been estimated. Any future redevelopment remains subject to successful exploration, resource definition, technical and economic studies, permitting and funding.
The next major ASX story will hit our subscribers first
Next steps for Perpetual and GreenMet
Over the near term, the company says the work will include:
- Narrowing the funding and financing opportunities under assessment and identifying the preferred pathway or combination of pathways.
- Progressing engagement with relevant US Government agencies and funding bodies.
- Assessing current and emerging tungsten-specific Government opportunities.
- Continuing discussions with strategic investors, defence and critical minerals supply-chain participants and potential downstream counterparties.
- Developing the technical and financial information required to support potential Government funding processes.
- Aligning Government engagement with the ongoing technical program, including historical data digitisation, 3D geological modelling, core assessment and planned drilling.
GreenMet expects the process to provide greater clarity on the most appropriate pathways “in the near term”. The announcement gives no firm dates.
Maiden drilling at the project is planned for late 2026. Combined with the funding strategy, that sets up a period of potential news flow, though outcomes on both fronts remain uncertain and the announcement confirms no committed funding.
Get Tungsten News Before the Market Moves
Join 30,000+ investors receiving FREE breaking ASX mining and energy news within minutes of release, with in-depth analysis already done. Click the “Free Alerts” button at Big News Blast to get market-moving announcements in your inbox the moment they break and stay ahead of the market.