RareX is selling a majority stake in its NSW copper-gold tenements to focus on its rare earth projects.
With its focus on the Cummins Range rare earth project in Western Australia’s Kimberley region, it was only a matter of time before RareX (ASX:REE) moved to reduce its interest or divest its non-core assets.
And it couldn’t have struck a better deal, allowing it to retain exposure to the upside of the NSW projects while at the same time giving it more cash and freedom to focus on its flagship rare earths project.
RareX has reached an agreement to sell a 65 per cent interest in its NSW copper-gold tenements to Canadian explorer Kincora Copper.
Under the binding memorandum of understanding, Kincora has paid the company a non-refundable payment of $C25,000 ($27,650) in exchange for a six-week exclusive option to buy the project.
On exercise of the option, Kincora will pay RareX a further $C150,000 in cash and 14.95 million Kincora shares priced at 6.5 Canadian cents each.
Kincora has projects in Mongolia and the Lachlan Fold Belt in NSW and is well supported by global funds LIM Advisors and New Prospect Capital...