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- Oro Verde will acquire 20 per cent interest in the Makuutu Rare Earths project
- It has the chance to acquire up to 60 per cent of the project
- The clay rare earth deposits are rare and located outside of China
- It will increase its interest to 31 per cent by contributing US$650,000 to an exploration program
- Oro announced a placement for $750,000 at 0.6¢ per share
Oro Verde will acquire 20 per cent interest in the Makuutu Rare Earths project.
Currently, Rwenzori Rare Metals own 100 per cent of Makuutu but Oro has the chance to acquire up to 60 per cent of the project.
The Makuutu project is approximately 40 kilometres East of Jinja in Uganda, Africa.
The project geology is similar to the southern China ionic clay-type deposits, which are the cheapest and most readily accessible source of Heavy Rare Earth Oxides.
Rare earth, clay deposits are considered to be rare and are found outside of China. According to the company this makes them important as Oro can produce non-Chinese supply.
Oro released a significant exploration target for Makuutu of 270-530 million tonnes grading at 0.04- 0.1 per cent.
The company will shortly increase its interest to 31 per cent by contributing US$650,000 to an exploration program.
Oro will have a placement to raise $750,000 for the project. A total of 125 million shares will be issued at a price of 0.6¢ per share.
Non Executive Director Marc Steffens is excited to be working on the Makuutu project.
“The Company now has an initial 20 per cent interest, and shortly 31%, in the Makuutu Project which has the potential to be one of the largest ionic clay rare earth projects outside of China,” he said.
Diamond drilling is expected to commence shortly with the primary objectives of collecting samples for test work and increase and enhance geological data.
Oro is a resource company and aims to identify and advance emerging resource opportunities with the potential for production.
“We are about to commence a significant drilling program that will further increase our geological confidence in the deposit and provide mineralisation samples for ensuing metallurgical test work,” Marc added.
