RareX to acquire strategic stake in Canada Rare Earth Corporation
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Special Report: RareX is expanding its exposure to the rare earths sector with its purchase of a significant stake in a Canada-based company.
This is due to CREC’s expertise in the rare earths sector and its access to rare earth refining capacity, and ability to construct and operate processing refineries for the mineral.
“We look forward to engaging with CREC to explore mutually beneficial opportunities including downstream processing options for our rapidly growing Cummins Range project that could provide us with a fast-track pathway to production,” managing director, Jeremy Robinson, said.
RareX will pay $C991,180 ($1m) to acquire Talaxis Group’s 12.3 per cent stake in CREC before mid-February 2021, and an upfront payment of $50,000 to lock in the deal.
CREC’s business model is for a vertically and horizontally integrated mine-to-customer value chain in the rare earths sector.
The Canadian company plans to build a supply chain that connects mining operations to rare earths processing plants and on to international customers.
CREC has a proven track record in designing, building and operating rare earth refineries with an output ranging from 2,500 to 12,000 tonnes per year, including in Thailand and Laos.
“At a time of continued strength in rare earths prices and increasing demand globally, this is an exciting opportunity for RareX to become involved at other levels of the global rare earths industry through a possible partnership with an experienced global group such as CREC,” Robinson said.
RareX said it is attracted to CREC as a business partner because of its deep knowledge in the global rare earths sector, access to non-Chinese refining capacity, refinery expertise and involvement in trading rare earth concentrates, particularly monazite.
The Australian company plans to work with its Canadian partner to develop mutual business interests and to explore refining options for the Cummins Range project.
The Cummins Range project has a maiden JORC resource for rare earths of 13 million tonnes at 1.13 per cent total rare earth oxide with 22.1 per cent neodymium-praseodymium.
The rare earth element neodymium-praseodymium is used in the manufacture of magnets for use in EVs and wind turbines.
RareX’s Cummins Range rare earths project is located in WA’s Kimberley region. Image: Company supplied
This article was developed in collaboration with RareX, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.