Red Mountain confirms rare acquisition
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Special Report: Red Mountain Mining has finalised its acquisition of the WA-based heavy rare earths and nickel-cobalt project Mt Mansbridge.
The Kimberley project was signed off by shareholders on Tuesday, a move which allows Red Mountain Mining (ASX:RMX) to move into the lucrative heavy rare earths space.
“Heavy rare earths remain a critical and strategic component of the modern economy and the board notes recent healthy price rises in heavy rare earth prices throughout November, in particular dysprosium and terbium,” Red Mountain said in a statement.
Red Mountain has already planned exploration on a series of targets at Mt Mansbridge in the new year, having recently completed a geophysical review of the project.
The company said it would update the market on a work program for the project in due course.
Red Mountain’s acquisition of Mt Mansbridge adds to the company’s portfolio a heavy rare earths project at a time when interest is high in the key elements.
Rare earths are used in critical technologies such as EVs and electronics, and spot prices have spiked recently on the back of trade sensitivity and supply constraints out of China.
China currently supplies around 98% of the global market for dysprosium.
The company has previously stated that it intends to fast track exploration and development to make the most of market conditions.
Mt Mansbridge spans a region southeast of Halls Creek, and is 40km from Northern Minerals’ (ASX:NTU)flagship Browns Range rare earths project.
Exploration has been undertaken at the project since the 1970s, mostly for uranium and gold, but RMX is excited by the presence of rare earth mineral xenotime at the Killi Killi prospect which has been overlooked until recently.
The Déjà vu prospect at Mt Mansbridge contains an ultramafic intrusion which the company says may be prospective for nickel and cobalt.
Red Mountain also holds gold projects in Western Australia and New South Wales, and a copper-cobalt project in the Democratic Republic of Congo.
Maiden drilling is expected to begin at Mt Mansbridge after the wet season in 2021.
This article was developed in collaboration with Red Mountain Mining, 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.