RareX strengthens balance sheet by $2.3m, kicks off maiden Cummins Range drilling
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Special Report: Rare earths explorer RareX is in great shape to complete two potentially game-changing exploration campaigns after investors, along with the company’s directors, chipped in a further $2.3m.
This new placement, which received strong support from existing institutional and professional investors as well as directors, will boost RareX’s (ASX:REE) war chest to $6.1m in cash and listed investments.
This puts the company in prime position to start a 6,000m maiden drilling program at its Cummins Range rare earths project, which hasn’t witnessed any drilling for nearly a decade.
Cummins Range in Western Australia’s Kimberley region currently hosts Australia’s fourth largest rare earth resource of 13 million tonnes grading 1.13 per cent total rare earths oxide.
Drilling was last conducted by previous owners back in 2011.
At the same time, RareX is continuing drilling at the Trundle copper-gold porphyry project, located in New South Wales’ highly prospective Lachlan Fold Belt.
The company has a 35 per cent free-carried interest in the project as well as a 9.65 per cent stake in TSX-V listed partner Kincora Copper.
“RareX shareholders will have exposure to two quite different, but equally exciting, exploration campaigns over the coming weeks and months,” chairman John Young said.
“Drilling is on track to commence next month at Cummins Range targeting extensions of our high-quality existing resource as well as new satellite discoveries.
“Meanwhile, we are in the midst of a potentially game-changing drill program at the Trundle project in NSW, where the Kincora team have intersected significant porphyry mineralisation in the first two diamond drill holes.”
Earlier in June, RareX revealed the pair had intersected thick zones of porphyry mineralisation in the second hole at the Trundle project.
The first two holes of the current drilling campaign have significantly expanded the scale and prospectivity of the Mordialloc and Trundle Park target zones, which are 8.5km apart.
RareX is awaiting the results of a third hole in the six-hole program.