Harena Rare Earths (LSE:HREE) has entered into an exclusivity agreement to evaluate the potential acquisition of Paradigm Critical Minerals, which owns heavy rare earth and uranium assets in the US.
Under the agreement, Harena will conduct detailed technical, legal and commercial due diligence on the assets, with an aim to progress toward a definitive transaction, should the results meet the company’s strategic and investment criteria.
The company notes there is no certainty that the agreement will result in Harena entering into a definitive agreement or completing a transaction.
Harena says the agreement represents a potential opportunity, along with its Ampasindava Project in Madagascar, to further its ambition to be part of the solution to the US Government’s critical minerals strategy.
Executive technical director Allan Mulligan says the assets broaden the company’s international critical minerals exploration and development story.
“There are so many under-explored and under-realised deposits that need to be properly assessed and evaluated, and few are better located than these permits,” Mulligan says.
“In addition to the elevated ratios of rare earths within these deposits, the uranium grades are in the order of 10 times some of those currently being mined around the world.”
Executive Chairman Ivan Murphy adds that the assets have delivered “strong” results for heavy rare earths and uranium and are located within one of California’s most established and prospective mining districts.
“The US is at the forefront of addressing global critical mineral and rare earth supply bottlenecks, and these permits represent another opportunity for us to support that effort.”
Paradigm Critical Minerals’ assets are located within San Bernardino County, California — which supports expediting drilling approvals and benefits from a skilled workforce base and established mining infrastructure. The county currently contains over 3,000 mines and over 8,000 active mining claims.
Historical exploration, including over 4,200m of drilling, has demonstrated ‘encouraging’ geological indicators. Initial exploration identified ‘strong’ geological analogies with established intrusive-related uranium deposits, including the Bancroft district in Canada and the Midnite Mine in the US.
Most recent surface exploration work has identified rare earth mineralisation associated with late-stage pegmatites, porphyritic felsic dykes and possible carbonatite-style intrusions. Grab samples have returned assays up to 2% total rare earth oxide, with portable x-ray fluorescence readings of 0.5% to 7.2% total rare earths across multiple locations.
Harena is a rare earths explorer and developer focused on the Ampasindava Ionic Clay Rare Earth Project in Madagascar. The project hosts one of the largest ionic clay rare earth deposits outside of China.
Write to Aaliyah Rogan at Mining.com.au
Images: Harena Rare Earths
