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In a sector where the descriptor "critical metals" has reached buzzword status, one junior has turned promotional word salad into meaningful dollars.

Fireweed Metals (FWZ-V) landed US$15.8 million in funding from the American Department of Defense to advance its Mactung tungsten deposit in Yukon, as well as up to $12.9 million from the Canadian government. The latter funding is subject to final due diligence and is slated for road and power infrastructure planning.

Mactung hosts one of the planet's largest high-grade deposits of tungsten, a dense metal known for its hardness and high melting point. Tungsten is a key component for electronics and military hardware. China controls most production.

Fireweed's adjoining Macpass zinc-lead-silver deposit is one of the world's largest undeveloped zinc resources. Macpass also hosts large stores of gallium and germanium. Chinese export bans on those metals have made friendly sourcing a top priority for Western governments.

Remoteness has always been a rub. The existing road (North Canol) that runs from Ross River and the Robert Campbell Highway to Fireweed's deposits requires major upgrades including bridge replacements, before any mining operation is even built.

Fireweed shares rose from $1.37 to $1.47 on the news Monday, then gave back back three cents Tuesday for a market cap of $260 million.

The company has two attributes that increase its odds of success and give it a leg up on virtually the entire junior mining sector: 1) the Lundins and 2) a flush treasury.

  • I have written extensively here about the third generation of Lundins, both before (Lundins 3.0: Well-Fed and Hungry) and after (What's Next After Filo's $4.5B Exit? A Few Ideas) their latest coup: the $4.5-billion Filo partnership with BHP, the world's largest miner, in the Vicuña district. The latest high-grade copper discovery, Lunahuasi, is housed within the Lundins' NGEx Minerals (NGEX-T), market cap $2.6 billion. Their recent moves consolidating Vicuña and partnering with BHP illustrate that Adolf's grandsons and Lukas's sons are able stewards of the family traditions of mining excellence and shareholder value creation.

Guts, Glory ... and Another Lundin Moonshot?

  • Since its inception with Brandon Macdonald as CEO, Fireweed has carefully managed the share structure through smart share-only financings. Teck and Ibaera Capital came in, as did U.S. high-net-worth investor Larry Childress. The addition of the Lundins in November 2022 -- they own 18.8% -- ensured access to capital, and on good terms. As of Sept. 30, Fireweed had $29.5 million in the treasury. The U.S. and Canadian government funding comes after the Yukon government and Ross River Dena Council First Nation pledged $71 million in road funding (in March 2020).

The Yukon: Different This Time?

Fireweed shares plunged along with other Yukon plays after the Victoria Gold heap-leach disaster in the summer. The stock has performed well since I last touched on it here in July. Lundins at the helm and government support as a tailwind bode well for future shareholder value creation.

Fireweed Metals (FWZ-V)

Price: $1.43

Shares out: 180.84 million (198.7M fully diluted)

Market cap: $260.4 million

Disclosure: I own Fireweed Metals shares and have done communications consulting with the company. This article is for informational purposes only and should not be considered investment advice.