Strategic opportunity provides RareX with a potential pathway to enhance future development options for its Cummins Range Rare Earths Project in WA
RareX Limited (ASX: REE) (RareX or the Company) is pleased to announce that it is reached agreement with Talaxis Group Holdings (Talaxis) securing an option to acquire its entire stake in TSV-Venture Exchange listed rare earths company Canada Rare Earth Corp. (CREC).
Under the terms of the agreement, RareX will pay Talaxis A$50,000 for an option to acquire 24,779,658 shares (12.3% of issued capital) in CREC before the 18th February 2021 for C$0.04 per share, for a total amount of C$991,186.32.
CREC is aiming to develop a vertically and horizontally integrated business within the global rare earth industry focused on building a supply chain connecting mining operations to rare earth concentration processes to rare earth separation and refining facilities and to major international customers.
CREC’s partners have a proven track record of designing, building and operating rare earth refineries with annual product output ranging from 2,500 to 12,000 metric tons per year, including strategically located refineries in Thailand and Laos.
The refineries are designed, built and operated to environmental and sustainability standards which meet or exceed the requirements in the leading countries of the world.
RareX is attracted to a potential investment in CREC due to:
Its deep knowledge of the global rare earths sector;
Its access to ex-China rare earth refining capacity;
Its ability to construct, own and operate rare earth refineries; and
Its active involvement in the trade of rare earth concentrates, particularly monazite.