RareX Limited Announces Key Land Access Agreement for Khaleesi Project
REE (REE) Share Update July 2024 Monday 29th
RareX Secures Land Access and Heritage Agreement for Khaleesi Project
RareX Limited (ASX: REE) has achieved a significant milestone by securing a land access and heritage agreement for its Khaleesi niobium and rare earth project. This agreement marks a pivotal step in advancing the company's exploration efforts.
Instant Summary:
- Land access and heritage agreement signed with Upurli Upurli Nguratja Aboriginal Corporation (UUNAC).
- Agreement aligns with benchmarked agreements for exclusive native title determinations.
- RareX to issue 1 million shares as part of the agreement.
- Exploration drilling anticipated to begin in October 2024 on licence E39/2409.
Agreement Details
RareX Limited (ASX: REE) has successfully negotiated a land access and heritage agreement with the Upurli Upurli Nguratja Aboriginal Corporation (UUNAC) for the Khaleesi niobium and rare earth project. This agreement is crucial for the company's exploration activities and is in line with benchmarked agreements for exclusive native title determinations.
The material terms of the agreement permit RareX to explore the Khaleesi Project in exchange for issuing 1 million fully paid ordinary shares. This issuance will utilize the company's available placement capacity under Listing Rule 7.1.
Significance of the Agreement
Managing Director James Durrant emphasized the importance of this milestone, stating, 'This milestone is the key enabler for exploration drilling on the most prospective licences of the project, which is anticipated to begin in October on licence E39/2409.' He also expressed gratitude to UUNAC and its advisers, Central Desert Native Title Services (CDNTS), for their good faith negotiations.
The agreement covers the majority of the Khaleesi Rare Earth and Niobium Project tenure. UUNAC's native title rights were recognized in November 2023, aligning with the traditional laws and customs of the Western Desert Cultural Bloc.
Next Steps
RareX is now focused on finalizing site access agreements with miscellaneous license holders, including the owners of the neighboring Mulga Rocks Project, Deep Yellow (ASX: DYL), and the main Tropicana access road, AngloGold Ashanti (ASX: AGG). The company is also preparing for a drilling program to commence in October, re-assaying drill core, generating drilling targets, and conducting a passive seismic survey.
Project Overview
The Khaleesi Project contains a large 20km diameter alkaline intrusive complex, similar to the Caldeira project of Meteoric (ASX: MEI) in Brazil. RareX has reinterpreted extensive gravity and magnetics data and is finalizing new drill targets. Prior exploration drilling did not focus on the types of targets being generated by RareX's geological theory and re-modelling.
The project is geologically proximal to the Mt Weld project (Lynas Rare Earths Limited) and located along strike from the highly-endowed Ponton Dyke, the 10km scale Cundeelee carbonatite, and the world-class Tropicana Gold mine. Data from over 10,000m of drilling indicates the potential for niobium enrichment in the basement rocks, rare earth enrichment, and continued prospectivity for precious and base metals.
This agreement is a significant positive development for RareX, enabling the company to proceed with its exploration plans. The issuance of shares as part of the agreement is a strategic move to secure long-term benefits. The commencement of drilling in October could lead to potential discoveries, positively impacting the company's stock price and investor sentiment.
Investor Reaction:
Analysts are likely to view this agreement favorably, as it clears a major hurdle for RareX's exploration activities. The collaboration with UUNAC and the forthcoming drilling program are expected to generate investor interest and optimism about the project's potential.
Conclusion:
Investors should keep a close watch on RareX's progress as the company moves forward with its exploration plans for the Khaleesi Project. The successful execution of the drilling program and potential discoveries could significantly enhance the company's value. Stay informed and consider the long-term potential of RareX's strategic initiatives.