OD6 Metals (ASX:OD6) has been offered $180,000 under the Western Australian Government’s Exploration Incentive Scheme (EIS) to support drilling at the Splinter Rock Rare Earths Project in Western Australia.
OD6, which has an $8.89 million market capitalisation, says the funds will be deployed at the Tighthead and Loosehead targets, both of which sit within Splinter Rock north-east of Esperance.
Both targets were uncovered from the company’s collaboration with the CSIRO.
The funds are subject to signing of the funding agreement, which must be returned before 1 June 2024. No EIS co-funded drilling can begin before that date.
OD6 Managing Director Brett Hazelden says funding from the state and federal governments is essential to make Australia a driving force in the provision of critical minerals.
“We recognise the Western Australian government’s support for the exploration industry and in particular the efforts of the many exploration and development companies also awarded a grant that are focused on the emerging critical minerals industry,” he says.
The EIS is a state government initiative that aims to encourage exploration in Western Australia for the long-term sustainability of the state’s resources sector.
The co-funded exploration drilling program is a flagship program of the EIS which opens for applications twice per year and offers up to a 50% refund for innovative exploration drilling projects.
OD6 Metals is an explorer and developer focused on rare earths within its project portfolio in the Esperance-Goldfields region of Western Australia.
As of 31 March 2024, the company had almost $1.22 million in cash and cash equivalents at hand, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: iStock
