Australian Rare Earths are building momentum on a mineral province at Koppamurra raising just over $11 million for it ionic rare earth project straddling the border between South Australia and Victorian border.
Ionic clay-hosted resources are the tentpole around which China has built a long-standing rare earth dominion.
And while the rock deposits which have typified Australian production come with heftier grades, clay rare earths are relatively straightforward to explore, drill, and mine.
AR3’s Acting Managing Director Rick Pobjoy said the placement not only broadens and strengthens the register but validates the potential of its deposit.
This placement gives the Company the balance sheet strength to continue the rapid progression of
activity at Koppamurra,” he said.
“We are encouraged by the market’s endorsement of Koppamurra’s potential, as demonstrated by the strong volume of bids received from global and domestic institutions and appreciate the continued support of our loyal existing major shareholders. We welcome all new shareholders of AR3 and look forward to a long and positive relationship with them.”
While China continues to dominate the sector, there are signs its influence is waning.
A 2013 paper from Beijing University’s environmental science and engineering department foresaw its heavy rare earth resources would be exhausted by 2028 while new discoveries come pouring in from the lucky country.
AR3 is not alone in rearing a clay-hosted resource within Australian borders, neighbouring Lanthanein Resources are moving on its own opportunity while Voltaic Strategic Resources, iTech Minerals, and Taruga Minerals all hold noted potential for nationally significant discoveries.
The majors have largely left a complicated rare earth sector to the small caps, but the money and opportunity is still there to be claimed.
