ASX-listed Tungsten Mining has conditionally agreed to acquire the assets of the Mt Mulgine project, in Western Australia, from Minjar Gold.

The acquisition gives the company rights to explore, and hopefully develop, all minerals on the Mt Mulgine tenements beyond tungsten and molybdenum.

"The ownership of these tenements is an important step as we seek to unlock value in our most important project for our shareholders," said Tungsten chairperson Gary Lyons.

Tungsten, through its wholly owned subsidiary Mid-West Tungsten (MWT), acquired 100% of the tungsten and molybdenum rights to the Mt Mulgine project in late 2015. Located in the Murchison region, the Mt Mulgine project has been the subject of significant exploration for tungsten and molybdenum.

Tungsten holds the rights to all by-products from the mining of tungsten and molybdenum, including gold, silver and copper. Minjar Gold, the registered holder of the Mt Mulgine tenements, holds all mineral rights other than tungsten and molybdenum.

The acquisition agreement outlines a purchase consideration of A$3.3-million, payable in cash, excluding stamp duty, with the assumption of any outstanding environmental liabilities relating to the assets. MWT paid a deposit of A$330 000 upon execution, with the balance payable upon completion. Completion is conditional upon receipt of Ministerial consent under the Mining Act 1978 (WA) for the transfer of the tenements and water licence. The agreement also includes provisions for the termination of the tungsten and molybdenum rights agreements held by MWT with Minjar.

No shareholder approvals are required for the transaction, and no changes will be made to Tungsten Mining's board or senior management. Tungsten Mining has also guaranteed the obligations of MWT under the agreement. Completion is expected to occur on the last business day of the month in which Ministerial consent is obtained or the following month if consent is granted in the final days of the month. The agreement also contains provisions for termination if conditions are not satisfied within four months of execution.