Spartan Metals Corp. announced a definitive option agreement dated March 13, 2026 and disclosed on March 17, 2026 to earn a 100% interest in the Victorio Tungsten-Molybdenum Project in Luna County, New Mexico. Under the terms, Spartan will make staged cash payments totaling $1,800,000, commit to $14,000,000 of exploration work over five years, and deliver a Feasibility Study on or before the eighth anniversary of the agreement.
The deal positions Spartan as a potential domestic developer of a critical metal resource amid rising tungsten prices.
The company emphasizes that Victorio hosts what has been characterized as the largest historic tungsten–molybdenum resource in the United States. Management plans to immediately update a 2008 Preliminary Economic Assessment (PEA) and incorporate current metal pricing and new work into an updated resource and economic model. Spartan also holds or has staked additional contiguous claims to expand its footprint around the optioned ground.
Table of Contents:
Deal structure and key commercial obligations
The option requires staged cash consideration and escalating work commitments: an initial cash payment followed by annual cash instalments that total $1,800,000, plus staged exploration expenditures summing to $14,000,000 over five years. Spartan must complete a Feasibility Study by the eighth anniversary to exercise the option. The agreement also includes milestone payments tied to delivery of a Prefeasibility Study and the Feasibility Study, and additional payments on commencement of commercial production, bringing total potential payments to $3,000,000 plus the exploration commitment.
Financial royalty terms include an annual Advanced Minimum Royalty (AMR) of US$100,000 starting on the sixth anniversary until production begins, after which a one-time production milestone payment of US$1,000,000 is due and the AMR ceases. Donegan Resources, the owner, will retain a 2.5% Net Smelter Return (NSR) on the 34 optioned claims, plus an additional 2% NSR on future claims within a three-mile area of interest, with buy-down provisions allowing reduction of that extra royalty.
Historical resource, metallurgy and verification plan
Historic work summarized in a 2012 estimate reports Measured and Indicated resources of 77.2 million tons grading 0.09% WO3 and 0.09% Mo (approximately 131.4 million lb WO3 and 138.6 million lb Mo), and an equivalent Inferred category of 77.2 million tons at 0.09% WO3 and 0.07% Mo (about 139.0 million lb WO3 and 108.1 million lb Mo). These historical figures suggest substantial tonnage but remain non‑current until validated by modern studies.
Metallurgical background and recovery assumptions
Past metallurgical testing at Hazen Research (1992 and 2007) reported positive recoveries, including up to 85% for molybdenum and combined tungsten recoveries in the mid‑70s percent range via flotation plus gravity. Spartan has used a conservative 75% recovery assumption for WO3 equivalent calculations but plans further test work and optimization as part of the updated technical program.
Resource verification steps
To convert historical data into a current NI 43‑101-compliant mineral resource, Spartan’s program will include twinning of select historic drill holes, additional infill and step‑out drilling, re‑sampling of existing core, verification of legacy assays, adoption of modern QA/QC protocols, updated geological modeling and resource estimation. Until those tasks are completed and a qualified person issues a current estimate, the historic numbers must be treated as indicative rather than definitive.
Project scale, geology and strategic importance
The Victorio package centers on 34 Bureau of Land Management claims (about 558 acres) optioned from Donegan, while Spartan has located an additional 188 contiguous claims, bringing the combined land position to roughly 3,909 acres (222 claims). The deposit occurs in stockwork vein and skarn settings within upper Cambrian/Ordovician host rocks, dominated by east‑northeast striking quartz veins that define an inverted saucer geometry roughly 3,700 ft by 3,250 ft and varying from 25 ft to 1,000 ft in thickness.
Primary minerals of economic interest are scheelite (tungsten) and molybdenite (molybdenum), with potential by‑products including beryllium, fluorspar, rhenium and rubidium. Spartan notes that pairing Victorio with its Eagle project strengthens a U.S. tungsten resource base: Eagle contains historically high grades from past producing mines and complements Victorio’s scale.
Governance, risk and next steps
Brett R. Marsh, CPG, President and CEO of Spartan Metals, is the company’s qualified person overseeing technical disclosure. The company cautions that historical production, grade and recovery figures are not current NI 43‑101 compliant resources or reserves until validated by new work. Spartan’s immediate priorities are updating the 2008 PEA, progressing the verification program, conducting metallurgical optimization and advancing engineering studies to support the prefeasibility and feasibility milestones outlined in the option agreement.
