RareX Limited (ASX:REE) acquisition announcement

RareX Limited (ASX:REE) has announced the acquisition of the Piper Project in the Aileron Province, Northern Territory. The project contains an untested 2.5km wide bullseye magnetic anomaly forming a large carbonatite target under sedimentary cover. The agreement with True Fella Pty Ltd outlines a low-risk, low-cost, high-reward deal structure, allowing RareX to earn-in over a five-year period by drilling at least 3x 300m deep drill holes for a total of at least 1,000m for 80% of the project's interest. RareX will solely fund project development up to the decision-to-mine, with the vendor having the option to be diluted from 20% to 5% of ownership following the decision-to-mine if JV spending is not matched after that point.

Managing Director's perspective on the acquisition

We are very pleased to establish a deal with True Fella Pty Ltd to explore the Piper Project. We believe this project has high potential to be a niobium-rare earths carbonatite pipe. The deal is structured to make sure the exploration dollars go into the ground and RareX is looking forward to testing True Fella's geophysical carbonatite target model. We see this project as complementary to our existing niobium and REE exploration portfolio and a robust medium-term proposition.

Outlook and future plans

RareX's acquisition of the Piper Project marks a significant step in expanding its portfolio of rare earths and niobium projects. The company aims to negotiate a land access agreement with the Central Land Council on the tenement in the coming months and plans for a drilling program in 2025. With a focus on low-risk, low-cost, high-reward deal terms, RareX is positioning itself to capitalize on the potential of the Piper Project. The company continues to pursue advanced projects in other parts of the world while maintaining a pipeline of exploration projects in Australia, demonstrating its commitment to growth and diversification.