Resources Top 5: Basin Energy rides high on entering quest for rare earths and uranium

• BSN acquires large prospective uranium and rare earth packages in the Mount Isa region
• An earn-in agreement will see Northern Star emerge with up to 70% of PolarX’s Alaska Range project
• IVZ has forged a partnership to advance the Cabora Bassa oil and gas asset in Zimbabwe

Your standout small cap resources stocks for Wednesday, August 27, 2025

Basin Energy (ASX:BSN)

Signing an agreement to acquire large prospective uranium and rare earth packages in the Mount Isa region of northwest Queensland saw Basin Energy (ASX:BSN) surge 220% to a 12-month high of 8c with more than 39m shares exchanged.

These properties are adjacent to Paladin Energy’s (ASX:PDN) Valhalla uranium deposit and Red Metals’ (ASX:RDM) Sybella rare earth discovery.

BSN has signed a binding agreement to acquire 100% of NeoDys, a privately held critical minerals explorer.

This provides Basin with a commanding position over one of Australia’s emerging and underexplored provinces for uranium and rare earth elements (REE).

The projects provide compelling walk-up drill targets that can be rapidly and cost-effectively tested using aircore and reverse circulation (RC) drilling. 

NeoDys has an existing Queensland Collaborative Exploration Initiative funding agreement for $150,000, which is available for Basin to support upcoming drilling.

Early stage exploration supports three distinct exploration models, each amenable to low-cost shallow drilling:

• AEM geophysical survey previously reported an extensive paleochannel network adjacent to the Sybella uranium “hot” granite;
• Significant hard rock granite REE potential, analogous to Red Metal’s Sybella discovery. Recent auger drill sampling returned 5m at 1,951 ppm TREO with 578 ppm Nd+Pr oxide, including 3m at 705 ppm Nd+Pr oxide; and
• District-scale sediment-hosted ionic clay rare earth potential. Soil sampling completed with numerous samples returning >600 ppm TREO with a maximum of 653 ppm TREO.

There are also Valhalla-style uranium targets with multiple untested radiometric anomalies, in proximity to the Valhalla, Skal and Odin deposits which host a combined 116Mlbs U3O8.

To support the acquisition, BSN has received firm commitments from institutional and sophisticated investors to raise $1.25m at 2.5c per share, representing a 9% premium to the 20-day VWAP.

With the placement and Queensland grant, Basin Energy is fully funded to test the drill-ready high priority targets, enabling it to fast-track multiple uranium and rare earth drill programs.

Detailed targeting and drill planning is underway with exploration planned to start in Q4 2025 to test shallow, high-priority targets via aircore and RC drilling.

PolarX (ASX:PXX)

Industry speculation has turned on Northern Star’s Pogo mine in Alaska as a potential divestment opportunity as it looks to develop the Hemi gold mine and bulk out its large WA focused gold portfolio.

But Australia’s biggest gold miner has instead doubled down on The Last Frontier, bringing ASX junior PolarX (ASX:PXX) along for the ride.

PXX has been cozying up to NST for close to three years, with Northern Star Resources (ASX:NST) emerging as a 10% shareholder in December 2022, a relative footnote after its acquisition of the Super Pit and merger with Saracen Mineral Holdings.

It’s now taken that relationship further with a US$39 million investment to create a corporate JV over PXX’s Alaska Range project, which contains growing copper and gold resources at Caribou Dome and Zackly.

Valued at $60m Aussie, the agreement would see Northern Star emerge with up to 70% of the project over a five-year period of exploration and pre-feasibility activities.

But destiny is very much in PolarX’s hands, with the junior to continue as manager of the project assisted by Northern Star’s technical team.

There are other kickers. A US$2m loan from NST doesn’t need to be repaid – it’ll be set off against the initial US$5m NST is contributing to the JV, assuming PXX shareholders approve the deal. PXX keeps 100% control of its Humboldt Range gold project in Nevada.

Northern Star will take an initial 15% stake in the JV, with the option to spend up to US$14m in two steps to get to 50% by the end of March 2027.

Another two-step second stage could see Northern Star tip US$20m in the 24 months to March 31, 2029, to claim up to 70%.

Around 250km northeast of Anchorage, Alaska Range includes Caribou Dome, where PolarX has an 81.94% interest, Senator (90% interest) and Stellar (fully owned).

The copper rich Caribou Dome hosts 7.2Mt at a super high copper grade of 3.1% along with 6.5g/t silver, while the polymetallic Zackly boasts 4Mt at 1.1% Cu, 1.6g/t Au and 12.6/t Ag for 45,000t copper, 213,000oz gold and 1.633Moz silver.

Bought from Sumitomo for US$260m in 2018, Northern Star’s Pogo is expected to produce 270-300,000oz in FY26 at all in sustaining costs of US$1500-1650/oz.

Invictus Energy (ASX:IVZ)

After forging a partnership to advance the Cabora Bassa oil and gas asset in Zimbabwe and establish an Africa-focused upstream company, Invictus Energy (ASX:IVZ) surged 150% to 13.25c, a 12-month high and on volume of more than 139m.

A binding MoU and share subscription agreement has been signed with Al Mansour Holdings (AMH) to acquire a 19.9% stake in Invictus at a premium to the current market price.

AMH, which is led by His Highness Sheikh Mansour bin Jabor bin Jassim Al Thani of Qatar, will provide up to US$500m in conditional finance to advance Cabora Bassa to commercial production.

It is intended to establish a new Africa-focused upstream company, Al Mansour Oil & Gas (AMOG), in a JV between Invictus and AMH.

AMOG will focus on acquiring producing and near-term development oil and gas assets as well as strategic corporate M&A across key African countries.

Invictus will lead technical, commercial and operational management and AMH will fund acquisitions and development through its Qatar-based investors.

Vital Metals (ASX:VML)

A two-tranche placement of $6.8 million will enable Vital Metals (ASX:VML) to advance testwork at its Nechalacho Upper Zone project in Canada which includes the Tardiff REE and niobium deposit.

In the first tranche US company Strategic Resources (SR) will invest A$3m and Vital will issue 28.59m shares at 10.5c giving SR an initial 19.52% interest.

Tranche 2 is subject to shareholder approval and will see Vital issue 36.59m shares to accredited US investors, raising A$3.8m.

SR has worked with Tardiff and North T REE enriched samples for two years delivering promising results for the application of an economic beneficiation process using proprietary Dry Field Force Extraction (DFFE).

Vital plans for a DFFE facility to be operating at North T starting in the Canadian summer 2026. 

One of the key objectives of the SR investment is to continue testing and scaling up the technology.

Aurelia Metals (ASX:AMI)

A return to a profitable and cash-generative business in FY25 saw NSW producer Aurelia Metals (ASX:AMI) increase 22.22% to 22c on volume of more than 52m.

EBITDA increased 69% to $121.9m, net profit after tax was $48.9m, compared to an FY24 loss of $5.7m and cash flows from operating activities lifted 29% to $129.7m.

Operations funded all growth capital in FY25 and the company has a bright future with a cash balance of $110.1m. 

“Our focus on making Peak more efficient was a significant driver of the increased cash flow generation and assisted in delivering the group a substantial net profit outcome for the year,” MD and CEO Bryan Quinn said.

“Aurelia has an amazing growth pipeline and our efforts this year have made great strides towards our target of 40,000t copper equivalent production in FY28.”

This article does not constitute financial product advice. You should consider obtaining independent financial advice before making any financial decisions.