Merger includes South Korea’s Ssangjon Mine and Tajikistan’s Maykhura Project; C$3M raise underway to restart near-term production
This merger marks the beginning of our mission to build a global tungsten producer at a time when new supply outside China has never been more important.”
CALGARY, ALBERTA, CANADA, August 6, 2025 /EINPresswire.com/ -- Pure Tungsten Inc. (“PT”) is pleased to announce it has signed a Letter of Intent (“LOI”) to merge with GB Innovation Co., Ltd. (“GBI”), a private Korean mining company that owns the historic Ssangjon tungsten mine in South Korea and holds an interest in the Maykhura tungsten project in Tajikistan. This proposed merger represents a major step toward establishing Pure Tungsten as a diversified, near-term producer of critical minerals, with a clear strategy to scale into a global tungsten supplier outside of China.— Tiger Kim, incoming CEO
KEY HIGHLIGHTS
- PT to merge with GBI, acquiring the Ssangjon Mine (South Korea) and the Maykhura Mine (Tajikistan)
- Stage 1: Restart of Ssangjon within 6 months, targeting 900–1,000 tonnes of WO₃ per annum
- Stage 2: Maykhura development to scale combined output to 4,000 tonnes WO₃ per annum
- C$3M capital raise underway at C$0.20/share
- Tiger Kim (ex-Sangdong, Morgan Stanley) to be appointed incoming CEO
- Public listing in progress via RTO on TSX-V or ASX
- China’s supply dominance (~85%) and tightening export controls creating strong demand for alternative supply
TRANSACTION OVERVIEW
Under the LOI, PT will acquire 100% of GBI’s shares in exchange for equity in the combined company. Post-merger, GBI shareholders will hold 75% of Pure Tungsten, with current PT shareholders retaining 25%. The combined company will focus on restarting production at Ssangjon and advancing Maykhura as part of a long-term strategy to build a multi-asset platform.
Tiger Kim, founder and CEO of GBI, will take over as CEO of Pure Tungsten. Paul Ensor will assume the role of Chairman. Tiger brings 15+ years of tungsten sector experience and previously held leadership roles at Sangdong Mine and Morgan Stanley. GBI was founded in 2020 to acquire and develop tungsten assets with support from Korean institutional backers, who will become major shareholders in PT.
STAGE 1: RESTARTING THE SSANGJON MINE (SOUTH KOREA)
The Ssangjon Mine, which operated between 1968 and 1974, is a high-grade past producer with a current 3 million tonne resource and substantial upside. Independent Technical Services (ITS) in Australia has estimated the deposit could host up to 25 million tonnes of unmined resource, subject to further drilling. The mine's grades are approximately double the global average, making it a standout tungsten asset.
GBI has already invested US$9.2 million into pre-development, including underground development and processing infrastructure. The project requires an additional US$5 million to restart production.
Upon funding, a short pre-production phase will be followed by full-scale output of 900–1,000 tonnes of 65% WO₃ concentrate annually, translating to projected revenues of ~US$20 million and EBITDA of ~US$13 million, based on current APT pricing (US$430/MTU).
The on-site mill requires only minor modifications, and most equipment is already ordered or installed. At full production, Ssangjon is expected to be South Korea’s second-largest tungsten mine.
STAGE 2: DEVELOPMENT OF MAYKHURA (TAJIKISTAN)
Pure Tungsten plans to scale total production to 4,000 tonnes of WO₃ per year by developing the Maykhura Mine, located in one of the world’s highest-grade tungsten belts.
Maykhura played a strategic role during the Soviet era, reportedly supplying up to one-third of Stalin’s wartime tungsten needs. It has remained dormant since 1972, offering significant redevelopment potential. Tajikistan is known for hosting large, high-grade skarn-type tungsten deposits.
TUNGSTEN: A STRATEGIC MINERAL IN SHORT SUPPLY
Tungsten is classified as a critical mineral due to its irreplaceable role in defense, aerospace, semiconductors, and advanced manufacturing. It has the highest melting point of any metal and is essential in making drill bits, armaments, electrodes, and machine tools.
China currently controls ~85% of global tungsten production and has recently introduced export restrictions, reducing available global supply. According to the British Geological Survey, Chinese production fell 18% from 2019 to 2023, creating a growing global shortfall.
As Western nations rearm and rebuild defense stockpiles depleted by conflicts in Ukraine and the Middle East, demand for non-Chinese tungsten sources is accelerating. Pure Tungsten aims to help fill this supply gap with production from reliable jurisdictions.
CAPITAL RAISE AND LISTING STRATEGY
To fund the Ssangjon restart and transaction close, Pure Tungsten is raising C$3 million via a non-brokered private placement at C$0.20/share. This implies a C$40 million pre-money valuation for the combined company.
Public listing discussions are underway with multiple RTO candidates on the TSX-V and ASX. Management believes current market conditions and the company’s near-production status offer strong listing appeal.
OUTLOOK
The transaction is expected to close within the next month. PT has completed due diligence on Ssangjon and is ready to advance rapidly once financing is secured.
Incoming CEO Tiger Kim commented: “This merger marks only the beginning of a journey we have meticulously prepared over the past several years. With several high-grade, strategically located tungsten mines poised to join the Pure Tungsten Group, our ambition is bold but achievable: to command a large share of the global tungsten supply outside China within the next few years. Our immediate focus is restarting production at Ssangjon.”
CONTACT
For investor materials or raise inquiries, please contact:
📧 edward.balme@puretungsten.ca
📧 max.beck@puretungsten.ca
🔗 https://www.puretungsten.ca/puretungsten-equity-raise-rn?SQF_LEAD_SOURCE=pr
Edward Balme
Pure Tungsten Inc
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