Blaze Minerals Locks in Uganda Tungsten Buy With Grades Up to 20% WO₃
Key Takeaways
- Blaze Minerals has entered a binding heads of agreement to acquire up to a 90% interest in two Ugandan tungsten projects — the Bahati Project (EL00778) and Buyaga Project (EL00780) — via the acquisition of Mgahinga Minerals Pty Ltd.
- Due diligence channel sampling at the historical Bahati mine returned grades of 1.0m @ 20.78% WO₃ and 0.8m @ 20.22% WO₃, with two interpreted mineralised corridors carrying approximately 600m of strike length, open in both directions.
- The Bahati mine has a documented production history of 269.34 tons of wolfram between 1951 and 1962, confirming vein continuity along strike and at depth across five mining levels over more than 100 vertical metres.
- Blaze has secured firm commitments for a $2.25 million placement at $0.0005 per share to fund acquisition payments and the upcoming exploration programme, with a proposed 20:1 capital consolidation to follow shareholder approval.
- The acquisition is structured across three staged payments totalling US$1.625 million, with Stage 1 (US$125,000) expected in October 2026, and Blaze retaining the right to withdraw prior to Stage 3 completion.
Blaze Minerals enters binding agreement to acquire high-grade tungsten projects in Uganda
Blaze Minerals (ASX: BLZ) has entered into a binding heads of agreement to acquire up to a 90% interest in two Ugandan tungsten projects via the acquisition of Mgahinga Minerals Pty Ltd (MMPL). The Bahati Project (EL00778) and Buyaga Project (EL00780) sit within a historically productive tungsten district, and due diligence sampling has already returned exceptionally high tungsten grades.
The two exploration licences are both granted, with an expiry date of 14 June 2030, though both are currently awaiting final gazette and Ministerial sign-off under Ugandan mining legislation. The Bahati Project is located in south-western Uganda within the Karagwe-Ankole Belt, a prolific tin-tungsten region, while the Buyaga Project is located in central Uganda within the Buganda granitic suite. The Karagwe-Ankole Belt hosts the Nyakabingo Project in Rwanda, one of Africa’s largest producing tungsten mines, which supplies up to 20% of primary tungsten concentrate consumed in the USA.
Managing Director Mathew Walker
“This is a transformational acquisition for the Company, providing direct exposure to an advanced exploration opportunity in a stable, friendly mining jurisdiction. Tungsten is amid a record price environment, and the Company is well positioned to benefit from any exploration success.”
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Exceptional assay results from the Bahati Project validate district-scale potential
The Bahati Project is the geological centrepiece of this transaction. Recent due diligence field activities at the historical Bahati mine included reconnaissance mapping and both grab and channel sampling of the underground workings and adits. What those samples returned puts the project firmly on the radar for tungsten investors.
Due diligence sampling returns headline grades
The following results were returned from due diligence sampling conducted by Company consultants across the historical Bahati mine workings:
- Channel sample: 1.0m @ 20.78% WO₃ (Sample F3616)
- Channel sample: 0.8m @ 20.22% WO₃ (Sample F3617)
- Channel sample: 2.0m @ 3.03% WO₃ (Sample F3606)
- Channel sample: 1.0m @ 6.79% WO₃ (Sample F3611)
- Grab sample: 56.23% WO₃ (Sample F3607 — note: grab samples are not considered representative and are indicative of grade potential only)
- Two interpreted NE-SW mineralised corridors with approximately 600m strike length, open in both directions
Samples were analysed by SGS Randfontein Laboratory in South Africa using the GO_XRF76 oxidising borate fusion method, with company geologists inserting blank QA/QC samples every 10 samples. Channel samples are considered representative of the intervals sampled.
The Bahati mine itself has a well-documented production history. A study for the Ugandan Development Bank recorded that it produced 269.34 tons of wolfram between 1951 and 1962 at grades of 1.0–2.2% WO₃, across five mining levels over a vertical extent of more than 100 metres. That production record confirms vein consistency both along strike and at depth — a meaningful data point for any drilling campaign design.
What tungsten grades like these mean for investors
WO₃ is the standard way the industry reports tungsten grade. It stands for tungsten trioxide, the oxide form of tungsten used to measure how much of the metal is present in the rock. A grade of 20%+ WO₃ from a channel sample is exceptionally high — it means roughly one fifth of that rock interval is tungsten oxide by weight.
Tungsten is classified as a critical mineral. It is used in defence applications (armour-piercing ammunition, aerospace components) and in hard industrial tooling where its hardness and heat resistance are unmatched. Supply chains are geographically concentrated, which is why the Karagwe-Ankole Belt’s proximity to established producers like Nyakabingo carries strategic weight. Managing Director Walker flagged a record tungsten price environment in his commentary, though no specific price was disclosed in the announcement.
For investors, what matters at this early stage is that these grades emerged from due diligence sampling, not a dedicated drill program. They come from a historically producing mine with demonstrated vein continuity at depth. That combination — high surface grades, vein consistency, and a blank-canvas exploration upside — is what underpins the Company’s description of this as a transformational acquisition.
Two-project strategy: Bahati’s advanced exploration and Buyaga’s greenfield upside
The acquisition packages two distinct assets with different risk and return profiles. Bahati is the advanced opportunity with historical data and high-grade surface results already in hand. Buyaga is a large, untested landholding offering greenfield scale.
| Feature | Bahati Project | Buyaga Project |
|---|---|---|
| Licence | EL00778 | EL00780 |
| Area | ~43 km² | 250 km² |
| Historical mines | Bahati, Nyanga, Bulunga | Buyaga (excised) |
| Exploration stage | Advanced — due diligence sampling complete | Greenfield — no modern exploration |
| Next step | Drilling campaign design | Soil sampling and mapping |
The Buyaga Project covers 250 km² within the Buganda granitic suite and surrounds the historical Buyaga mine, which is excised from the licence. There is no record of any drilling ever being conducted on the Buyaga Project, and the announcement confirms it has never been subject to modern exploration techniques. That makes it a blank-canvas opportunity within a proven tungsten address.
Planned field activities across both projects ahead of a drilling campaign include:
- High-resolution drone imagery and creation of a digital terrain model (Bahati)
- LiDAR scanning of the underground workings (Bahati)
- Detailed mapping and rock-chip sampling of surface outcrop (Bahati)
- Trenching across Koga Hill (Bahati)
- Close-spaced soil sampling south of the excised Buyaga Mine (Buyaga)
- Compilation of all gathered data into 3D modelling software ahead of a drilling campaign (Bahati)
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$2.25 million placement funds exploration push
To fund the acquisition and the exploration programme ahead, Blaze has received firm commitments from institutional, professional and sophisticated investors for a placement to raise $2,250,000 before costs.
The placement involves the issue of 4,500,000,000 fully paid ordinary shares at an issue price of $0.0005 per share, structured in two tranches. Tranche 1 covers 381,250,000 shares issued under Listing Rule 7.1 capacity, with settlement expected on or about 9 September 2026. Tranche 2 covers the remaining 4,118,750,000 shares and is subject to shareholder approval.
CPS Capital Group Pty Ltd (AFSL 294848) is acting as Lead Manager under a mandate. Fees payable under that mandate are $20,000 (excluding GST) fixed, plus 6% of gross funds raised (comprising a 1% management fee and 5% placement fee), payable in cash.
The Company also proposes to seek shareholder approval for a 20:1 capital consolidation at the same general meeting as Tranche 2 approval. On completion of the full placement and post-consolidation, the total shares on issue would be 371,250,000.
Funds raised are intended to be used for acquisition payments on the Ugandan projects, exploration costs on the Ugandan projects, further exploration on the Company’s existing projects, placement costs, and general working capital.
The acquisition itself is structured in three staged payments (separate from the placement), tagged to MMPL acquisition milestones:
- Stage 1 (expected October 2026, subject to satisfaction or waiver of conditions precedent including completion of legal and technical due diligence): US$125,000
- Stage 2 (no later than 12 months from Stage 1 completion, subject to Blaze providing written notice to proceed): US$500,000
- Stage 3 (no later than 24 months from Stage 1 completion, subject to Blaze providing written notice to proceed): US$1,000,000
From Stage 1 completion, Blaze will sole fund exploration activities on the licences through to completion of a definitive feasibility study. The Company retains the right to withdraw from the agreement at any time prior to completion of Stage 3, following which it would be required to transfer its shareholding in MMPL back to the vendor.
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