Ionic Rare Earths Limited (ASX: IXR) has signed a share purchase agreement (SPA) with Rare Earth Elements Africa Ltd, under which IonicRE will acquire a further 34% interest in local Ugandan operating entity Rwenzori Rare Metals Limited, which owns the Makuutu Rare Earths Project.
IonicRE has an existing 60% interest in the project and completion of this transaction will see IonicRE’s interest in Makuutu increase to 94%.
The company expects this to be a substantial step forward in progressing the financing and offtake discussions with multiple third parties who have expressed strong interest in partnering with the company in order to access the heavy rare earth product from Makuutu.
Tim Harrison, managing director, said, “Makuutu isn’t just any rare earth project; it’s a strategic asset, and importantly one of the most advanced ionic adsorption clay projects globally. Makuutu can unlock near term supply of heavy rare earths into the advanced manufacturing demand that far exceeds existing supply. It has immediate strategic value to these new supply chains forming.”
Additionally, the first mixed rare earth carbonate (MREC) product is on track to be produced from the demonstration plant in Q1 2024 to send to potential customers and offtake parties for evaluation.
Mr. Harrison continued, “This is an exciting time for Makuutu as we near production of first mixed rare earth carbonate from the demonstration facility in the first quarter of 2024, and the increased ownership will enable IonicRE to advance and accelerate discussions with strategic investors, offtake partners and financiers.”
Completion under the SPA is subject to a number of standard conditions precedent for a transaction of this nature.
To find out more, please visit www.ionicre.com.au
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