- Sagon Resources has completed the acquisition of RareX and has exercised its option to purchase 100 per cent of the Cummins Range Rare Earths Project
- The sale agreement is with Element 25 who will use the funds to provide working capital for its Butcherbird High Purity Manganese Project
- To exercise its option, Sagon will proceed to pay $500,000 cash and issue $500,000 worth of its shares
- Cummins Range has high potential for neodymium and praseodymium which are crucial for the EV market, wind turbines and military hardware
Sagon Resources has completed the acquisition of RareX and has exercised its option to purchase 100 per cent of the Cummins Range Rare Earths Project.
The company entered a conditional agreement on August 2, to acquire the rare earths company. Upon entering the agreement, Sagon also stated its intention to attain Cummins Range and access the rare earths market.
Also announced on August 2, was the completion of a share placement to raise $1.17 million to complete the acquisition of Cummins Range, to fund the maiden exploration program and to review its historical projects.
To exercise its option, Sagon will proceed to pay $500,000 cash and issue $500,000 worth of its shares at the 30 day VWAP to Element 25.
Other terms include, within 36 months of settlement and subject to the completion of a positive Bankable Feasibility Study on the Cummins Range Project, Sagon must pay or issue $1 million in cash or Sagon shares, or a combination to a total $1 million value.
For Element 25, the additional cash will provide working capital as it completes pre-feasibility work at its 100 per cent-owned Butcherbird High Purity Manganese Project.
The Cummins Range Project is located 130 kilometres south-west of Halls Creek in the Kimberley Region of Western Australia. It is one of the two known rare earth-bearing carbonatites in the country, the other being Lynas Corporation’s Mt Weld.
Cummins Range has high potential for neodymium and praseodymium enrichment. These critical elements are integral to the manufacture of electric vehicles, wind turbines and military hardware.
Now that the sale is complete, stage 1 of the maiden drill program is planned to commence in the next few months, subject to permitting.
The program will include metallurgical test work to better assess the grade of the Cummins Range Rare Earths Project.
Additionally, Sagon has confirmed Jeremy Robinson has been appointed as an Executive Director. Jeremy is an experienced mining executive and has held senior roles at Mungana Goldmines and Apex Minerals.