PERTH (miningweekly.com) – ASX-listed American Rare Earths has struck a share purchase agreement with fellow listed Zenith Minerals over its Laramie rare earths project, in Wyoming.
Under the terms of the agreement, American Rare Earths will acquire Zenith’s wholly owned subsidiary Wyoming Rare for 2.5-million of its own shares, along with A$50 000 in cash, subject to the satisfaction of a number of conditions, including the conversion of exploration permits to mineral leases, which is expected in November.
The purchase will include all data, including samples and maps associated with the Laramie project, and exploration permits, which are precursors to mineral leases.
American Rare Earths told shareholders that the acquisition provides the company with the opportunity to define a very large-scale exploration target, once initial follow-up work has been completed.
“The acquisition of the Laramie rare earths project continues the company’s strategic focus on American rare earths,” said chairperson Creagh O’Connor.
“Wyoming is home to several major mining operations. The project area has excellent road and rail infrastructure. Wyoming is historically known to host rare earths. The project area shows some similarities and should complement our La Paz rare earths project,” said O’Connor.
He said that the company’s immediate focus would be on further mapping, surface sampling and geophysical surveying to establish the overall extent of the mineralised zones and target highest grade areas for drill testing, along with further mineralogical and beneficiation studies.
Zenith, for its part, told shareholders that the divestment of Laramie would allow the company to focus on its core gold and copper projects in Queensland and Western Australia.