DeSoto Resources acquisition of Spectrum Project

DeSoto Resources Limited (ASX: $DES) has signed a binding term sheet to acquire the Spectrum Project, a high-grade Rare Earth Element (REE) project in the Pine Creek region of the Northern Territory. The project, strategically located within DeSoto's existing Fenton Project, presents historic high-grade REE intercepts and untested strong semi-coincident Copper-Lead-Zinc geochemical and geophysical anomalies. DeSoto plans to spend $2 million for exploration activities at Spectrum in its first 15 months, supported by the Company's A$6 million cash position.

Managing Director Chris Swallow on the acquisition

This highly complementary acquisition gives us a strategic, critical minerals position in the Northern Territory. With the confirmed mineralisation and supporting geophysical anomalies in the surrounding Fenton Project, we are now positioned for an accelerated phase of exploration and drilling. Moreover, the recent government investment to expedite Rare Earths mining in the Northern Territory perfectly aligns with this new acquisition, enhancing our capacity to capitalize on the region's REE potential. The strategic synergy we are gaining with this acquisition strengthens our position in the critical minerals landscape.

Summary of DeSoto Resources' acquisition and outlook

DeSoto Resources' acquisition of the Spectrum Project marks a significant step in bolstering its critical minerals position in the Northern Territory. The project's historic high-grade REE intercepts and untested strong semi-coincident Copper-Lead-Zinc geochemical and geophysical anomalies present a promising opportunity for exploration and development. With plans for ground geophysics and multiple Diamond Drill (DD) and Reverse Circulation (RC) programs underway, DeSoto is set to invest $2 million for exploration activities at Spectrum in its first 15 months. The acquisition aligns with Australia's strategic minerals strategy and is supported by government initiatives, positioning DeSoto to capitalize on the region's REE potential. The Northern Territory's emergence as a rare earths hub and the government's substantial investment further underpin the outlook for DeSoto's strategic expansion in the critical minerals sector.