After shareholders gave the green light, Sagon Resources (ASX: SG1) has now cemented its 100% ownership of the Cummins Range rare earth element project in WA’s Kimberley.
According to Sagon, Cummins Range is one of only two known rare earth baring carbonatite deposits in Australia.
Rare earth producer Lynas Corporation (ASX: LYC) holds the other carbonatite-style rare earth deposit in the country.
Sagon pointed out that Cummins Range also has potential for high neodymium and praseodymium enrichment, which are critical rare earth elements used in manufacturing electrical vehicles, wind turbines and military hardware.
As part of the acquisition, Sagon completed a $1.17 million capital raising to institutional and sophisticated investors.
Additionally, to cement its ownership, Sagon will pay the vendors $500,000 in cash and issue a further $500,000-worth of shares.
Sagon will use part of the capital raising funds to make its $500,000 cash payment, with the remainder to be used to undertake a maiden exploration program at the newly acquired project....
For more of this article go to Small Caps