Military Metals buys Cold War-era antimony projects to light up West’s night vision goggles

Military Metals (CSE: MILI; US-OTC: MILIF) is buying two antimony projects in Slovakia dating from the Soviet era to boost Western supplies for defence applications such as night vision and infrared sensors.  

The all-share deal, which also includes a tin project and a small processing plant, values the assets at about $6 million, Vancouver-based Military Metals said on Wednesday. The antimony projects include Trojarova, where past owners explored in the 1980s and ’90s. A historical report showed it had 1.3 million tonnes grading 4.146% antimony and 0.591 grams gold per tonne in a 2% antimony cut-off scenario, the company said.

Military Metals says Trojarova could be one of Europe’s most significant primary antimony deposits. It plans new drilling to complete a resource at NI 43-101 standards. Geopolitical tensions, export limits and trade sanctions against main producers Russia and China have roughly tripled antimony’s spot price in recent years to around US$29,000 per tonne.

“With a well-established, rich mineral base, this brownfield site enables us to work towards a reliable domestic antimony supply when Europe faces mounting supply chain pressures,” CEO Scott Eldridge said in a release. “This acquisition reflects our commitment to reducing reliance on Chinese imports, ensuring stability for the European market and empowering the West to drive a more resilient, self-sufficient future for critical materials.”

Shares in Military Metals fell 1% on Wednesday morning to 98¢ apiece, valuing the company at $32 million. The stock has rocketed 1,300% this year from 7¢. It listed in June 2022 at $2.25.

Eastern sources

Almost all global reserves of antimony are concentrated in China, Russia and Tajikistan. China, which mines and processes nearly half of global output, began restricting exports Sept. 15. The United States, Canada, the European Union and Britain classify it as a critical mineral. Besides defence applications, the metal is also used in batteries.

The U.S. doesn’t produce antimony at the moment. But the federal government gave a key environmental approval last month to Perpetua Resources‘ (TSX: PPTA; NASDAQ: PPTA) Stibnite gold project in Idaho. Stibnite holds 148 million lb. of antimony, according to a 2020 feasibility report. Yet it will be more known for gold, with plans to produce 450,000 oz. a year.   

In April, the Export-Import Bank of the U.S. said it’s considering lending Perpetua US$1.8 billion. It would be one of Washington’s largest ever investments in a domestic mine.

Military Metals says the EU’s Critical Raw Materials Act has opened financing sources from local European institutions. The company didn’t identify specific financing it might pursue.

Historical drilling

Geologists discovered Trojarova in the late 1970s. It was drilled for 63 core holes totalling 14,330 metres plus 1.7 km of underground workings from 1983 to 1995. These included a 300-metre adit connected to a 700-metre drive in the mineralized zone’s footwall with seven crosscuts, the company said.

The Slovak Geological Institute published a multi-volume study on Trojarova in 1992. While the Soviet standards used in the report aren’t the same as Western measures, the project’s historical resource is somewhat similar to inferred tonnes, Military Metals said.

The deal’s second antimony property, Tiennesgrund, features over two dozen small underground workings. Officials reported a long artisanal-scale mining history along its 10-km length, the company said.

Tiennesgrund holds a large fault and shear-hosted antimony-gold vein system. The project in eastern Slovakia has multiple adits, the company said.

Tin project

The nearby Medvedi-Potok tin property also features historical drilling, underground development and a historical tin resource. It hosts a tin vein system in a greisened intrusive.

The processing plant is part of the company’s efficiency and innovation strategy and is a key differentiator in the market, it said.

“We’re taking a transformative step to strengthen Europe’s access to essential raw materials,” the company said.

“With global demand for antimony soaring and critical mineral supply chains becoming increasingly strained geopolitically, Military is seeking to take advantage of a strategic opportunity to acquire an asset that can fill this global demand.”