Cadoux (ASX:CCM) has acquired a 50% stake in privately held emerging rare earths producer Minhub Operations under a two-stage share purchase agreement.
Minhub Operations is developing the Minhub third-party downstream heavy mineral sands and rare earths production facility in Darwin in collaboration with Arafura Rare Earths (ASX:ARU). Arafura has the right to own up to 50% via pro-rata funding with Cadoux.
The Minhub project seeks to process third-party mineral sands concentrate from the Gippsland and Murray Basins to separate rare earths from other valuable mineral sands products.
On 9 May 2023, Cadoux — under the name FYI Resources at the time — expanded its critical minerals strategy into the rare earths sector through an agreement which provided stages to acquire Minhub Operations.
Under the agreement, Cadoux, which has a market capitalisation of $23.48 million, will issue 4 million shares under the first stage of the deal.
The company has also committed a minimum of $450,000 to funding a Feasibility Study for the processing facility.
Under stage two of the acquisition, Cadoux will collaborate with Minhub to meet certain project milestones, which will take Cadoux’s interest to 100%.
Managing Director Roland Hill says the company has been working closely with Minhub since May 2023.
“We will continue to work with Minhub Operations to complete the outcomes defined under our heads of agreement,” Hill says.
“The Minhub project is innovative in concept, and a very exciting project to be involved with considering the potential commercial benefit that the project offers.”
The Minhub operations aims to develop a sovereign collaborative mineral separation plant, where rare earths — monazite and xenotime — will be separated from other minerals such as zircon, rutile, and ilmenite.
Cadoux is an emerging developer of critical minerals focused on high purity alumina and rare earths downstream production.
Write to Aaliyah Rogan at Mining.com.au
Images: Cadoux
