RareX has agreed to sell its 35% asset level interests in the Trundle, Fairholme, Jemalong, Cundumbul and Condobolin exploration licences in NSW to its Joint Venture partner, Kincora Copper (ASX:KCC).

In consideration, the company will be issued 40 million Kincora Chess Depositary Interests (CDIs) and a 1% Net Smelter Return Royalty (NSR).

Along with the transaction, Kincora has undertaken an oversubscribed $2m placement at A$0.05 per share.

RareX (ASX:REE) will become Kincora’s largest shareholder post the placement and transaction with a holding of approximately 45 million shares (18%) in Kincora, comprising 40 million shares issued under this transaction and 5 million shares already owned by the company.

RareX chairman to join Kincora board

Once the transaction is finalised, Kincora will hold 100% ownership in 8 projects, covering 2,367km2 in highly prospective settings within world-class gold-copper mineral belts in a Tier-1 jurisdiction.

And as part of the transaction, RareX (ASX:REE) chairman Jeremy Robinson will join the board of Kincora.

“The time has come to vend our NSW exploration interests to Kincora, clearing the path for a major to take over the funding and add to the exploration of these world-class projects,” Robinson said.

“We expect these transactions to be a real catalyst to accelerate ongoing asset level partner discussions and also be a positive share price catalyst in the immediate to longer term.

“I am personally very pleased to assist at the board level and support Kincora’s endeavour to become a significant copper-gold player.”

Cummins Range the focus for RareX

Meanwhile, the company is focused on advancing its Cummins range phosphate rare earths project in WA, where recent metallurgical testwork proved the viability of Stage 3 operations with high REE recoveries.

These testwork results, along with the recent, massive resource upgrade, will underpin the completion of a scoping study which will in turn serve as the base for a more advanced study due later in the year.

This scoping study – for the stage 1 DSO (direct shipping ore) mining operation and stage 2 phosphate beneficiation is scheduled for delivery shortly while a fast-tracked Definitive Feasibility Study (DFS) for the DSO product is due at the end of 2023

RareX is also on the hunt for potential offtakers, and says that interest garnered from potential partners will give the company a better idea of the market and grade requirements in order to optimise its stage 1 and stage 2 plans for the project.

 

 

 

This article was developed in collaboration with RareX Limited, 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.

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