Locksley Resources (ASX:LKY) has completed the acquisition of the Mojave Rare Earth Element (REE) Project in the Mojave Desert of California, US.
As part of the purchase, the $7.79 million market capitalisation company acquired 100% of the issued capital in Enigma Strategic Minerals, which, through its wholly owned subsidiaries, owns 201 mineral claims making up the North Block and South Block of the Mojave Project, as well as 5 mineral claims making up the El Campo prospect area.
Locksley says the project has the potential to host numerous rare earth element (REE) deposits. So far, at the El Campo prospect, rockchip samples have already returned ‘high-grade’ results of up to 9.49% total rare earth oxide (TREO).
The Mojave Project neighbours the ‘high-grade’ Mountain Pass Mine and processing facility owned by MP Materials, according to Locksley.
Commenting on the acquisition, Locksley Resources Managing Director Steve Woodham says: “The successful acquisition of the Mojave Project in the REE sector is a step forward for the company, particularly when considering the surging global demand for renewables.
“The successful acquisition of the Mojave Project in the REE sector is a step forward for the company, particularly when considering the surging global demand for renewables“
The board looks forward to providing further updates in the coming weeks when assay results have been received.”
As payment for the project, Locksley issued the sellers 10 million shares and 5 million unlisted LKY options exercisable at $0.10 before March 30 2026. Locksley will also issue up to 30 million performance rights based on exploration results from the project area.
Locksley Resources is a mineral exploration company focused on copper, gold, and base metal assets throughout Australia. The company is also exploring REE projects in the US.
As of 30 June 2023, the company had $2.273 million cash and cash equivalents at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: Locksley Resources
