Rafaella Resources (RFR.ASX) is engaged in developing critical metals projects in Spain and Canada. In Spain, RFR is developing its wholly-owned Santa Comba tungsten project, for which it has secured an offer for a 5-year offtake with H.C. Starck Tungsten GmbH (HC Starck). The company also owns acreage in Canada, via the McCleery copper‐cobalt project located in the Yukon Territory. Further, in August 2020, RFR acquired a 100% stake in the Midrim and Laforce high-grade nickel-copper-PGE sulphide exploration projects in Quebec, Canada.

The company is supported by a strategic investment by Transamine Trading, a private international commodity trader who also has a nominee on the Board.

Key highlights include:

1. Economics: Post-tax IRR of 120%, US$21.0M NPV at an 8% discount rate. Total development CAPEX, US$7.1M with a payback of 5 months. Read the PFS announcement here.

2. Upside potential: PFS only focuses on the near surface resources with substantial upside available from further infill and step-out drilling of the existing near surface resource (planned for early 2021) and recommissioning the high-grade underground operation (underway).

3. Good connectivity: The project is well-connected with three different ports namely, La Coruña (60 km), Pontevedra (100 km) and Vigo (130 km). Surrounded by first-world infrastructure such as sealed roads, proper water sources and existing power lines offers the potential for rapid development while also providing easy access to key end markets in Europe and USA.

4. Near term cash flow: The company has all the necessary permissions for construction of the process plant and underground mining and through the local quarry operator can access the open pit material. With the PFS and process flow sheet in place, the company is targeting to start generating cash flows in 2021.

5. Growing portfolio: RFR also owns an early-stage copper‐cobalt exploration site and a high-grade nickel sulphide project in Canada, which can provide it medium-term growth options.