Dateline Resources (ASX:DTR) has acquired full ownership of the Argos Strontium Project in California as a part of its strategy to expand its critical minerals portfolio.
The company will divest 8 million shares to the vendor, which will be held in escrow before being in 1 million shares intervals per month for a total of eight months, equalling approximately $2 million in value.
The vendor will retain a 1.25% net smelter royalty of product produced from the Argos Project.
Dateline is currently involving its technical team with historical data to identify the next exploration phase for Argos.
Managing Director Stephen Baghdadi described the completion of this acquisition as a milestone moment for the company.
“It gives us full control over a uniquely strategic asset at a time when the US is urgently seeking domestic sources of minerals,” Baghdadi says.
“Argos is a natural fit within our portfolio; it’s nearby our Colosseum Project and complements our focus on minerals needed for advanced technologies.”
The project is located around 100km from the Colosseum Mine, which historically produced gold and hosts potential for rare earth elements.
“With strontium’s importance in electric vehicles, defense ordnance, and even space systems growing, having the only American strontium deposit of note puts Dateline in an enviable position.”
The US Department of Defense recently revealed a $192.5 million investment that will benefit domestic producers of chemicals critical for defense systems.
This includes specialised strontium compounds that are often used for military weapons.
Dateline Resources is an Australian explorer focused on operations across North America.
Write to Maddison Elliott at Mining.com.au
Images: Dateline Resources
