Australian Strategic Materials (ASX:ASM) has decided not to go ahead with the staged earn-in of a 75% stake in the rare earths rights within Caspin Resources’ (ASX:COM) Mount Squires Project in Western Australia.
The company, which has a market capitalisation of $94.3 million, made the decision to terminate the agreement after seeing the results of metallurgical testwork on samples from the project.
Australian Strategic Materials and Caspin Resources struck the deal in April 2024 under which Australian Strategic Materials had an initial three months to conduct and pay for metallurgical testwork on existing samples.
The explorer then had a further six months in which Caspin would undertake drilling, with the cost to be covered by Australian Strategic Materials, to produce samples for additional metallurgical testwork.
The two companies would then have a final two months to negotiate and finalise a joint venture, with the option agreement expiring at the end of May this year.
Australian Strategic Materials Managing Director Rowena Smith says while the company will not proceed with the option, it has been a valuable process as it continues to explore the identification of additional potential rare earths sources to supplement the Dubbo Project.
“Aligned with Australia’s critical mineral strategy and broad global demand, the Dubbo Project is well positioned to become a rare earth separation and refining hub, with the ability to unlock value for potential rare earth projects across Australia,” Smith says.
“Working with industry, we will continue to explore such opportunities.”
Australian Strategic Materials is an emerging vertically integrated producer of critical metals for advanced and clean technologies.
Write to Angela East at Mining.com.au
Images: Caspin Resources
