ASX-listed Ionic Rare Earths (IonicRE) has signed a share purchase agreement with Rare Earth Elements Africa to acquire a further 34% interest in local Ugandan operating entity Rwenzori Rare Metals, which owns the Makuutu rare earths project.
IonicRE has an existing 60% interest in the project. Completion of the transaction will increase its shareholding to 94%, which the company highlights as a considerable milestone.
It adds that this is a substantial step forward in progressing the financing and offtake discussions with multiple third parties that have expressed a strong interest in partnering with the company to access the heavy rare earth product achieved through the development of the project.
“Makuutu isn’t just any rare earth project; it’s a strategic asset, and importantly one of the most advanced ionic adsorption clay projects globally. Makuutu can unlock near-term supply of heavy rare earths into the advanced manufacturing demand that far exceeds existing supply. It has immediate strategic value to these new supply chains forming.
“With a dominant 71% magnet and heavy rare earth basket content, Makuutu stands tall as one of the most advanced heavy rare earth projects globally. Positioned strategically, it's poised to fuel the emerging supply chains across Europe, the US and Asia,” IonicRE MD Tim Harrison acclaims.
“This is an exciting time for Makuutu as we near production of first mixed rare earth carbonate from the demonstration facility in the first quarter of 2024, and the increased ownership will enable IonicRE to advance and accelerate discussions with strategic investors, offtake partners and financiers,” he adds.