ASM's exclusive option agreement with Caspin Resources Limited

Australian Strategic Materials Limited (ASM) (ASX: $ASM) has signed an exclusive Option Agreement with Caspin Resources Limited (ASX: $CPN) to potentially enter into a joint venture agreement to earn up to 75% of the rare earth element (REE) rights in Caspin's Mount Squires Project, located in the West Musgrave region of Western Australia.

ASM Managing Director and CEO's perspective on the agreement

We are pleased to collaborate with Caspin to identify further raw material supply for ASM's Dubbo Project separation and refining facility. This opportunity aligns with our mine to metals strategy to broaden its rare earth supply, particularly for high value heavy rare earths. Additionally, we see real value in developing the Dubbo Project as a rare earth separation and refining hub with the ability to unlock value for potential rare earth projects across Australia.

ASM's strategic move and outlook

Australian Strategic Materials (ASX: $ASM) has taken a strategic step by securing an exclusive Option Agreement with Caspin Resources Limited to potentially expand its rare earth supply. The Mount Squires Project, subject to metallurgical testing and drilling, may offer a significant proportion of high value heavy rare earths suitable for processing at ASM's planned separation and refining facility at the Dubbo Project. This aligns with ASM's mine to metals strategy and its ambition to broaden rare earth supply, particularly for high value heavy rare earths. The company aims to undertake metallurgical testing and drilling programs to identify the potential of the Mount Squires Project before deciding whether to exercise its option to enter into a joint venture agreement with Caspin. This move reflects ASM's vision to develop the Dubbo Project as a rare earth separation and refining hub, unlocking value for potential rare earth projects across Australia.