RareX (ASX:REE) has received a $1.97 million refundable tax offset for eligible research and development (R&D) activities conducted at its flagship Cummins Range Rare Earths and Phosphate Project.
The $17.76 million market capitalisation company says the refund has been received for activities undertaken during FY22 to FY23.
The activities were undertaken to continue testing the hypothesis relating to the development of an innovative process and product delivery approach for the extraction of rare earth and phosphate elements from Cummins Range.
RareX reports the funds position the company in a ‘strong’ position moving into 2024, strengthening its balance sheet, and providing it with the financial flexibility to progress the next key stages of its recently articulated staged development plan for the project.
Chief Executive Officer (CEO) James Durrant says the company is focused on working through the offtake process to legitimise its development approach in light of the tax refund.
“We believe that, through this R&D work, we have identified a novel way to monetise both the valuable rare earths and phosphates contained within this unique deposit for the magnet metals and LFP battery supply chains respectively.
“We believe that, through this R&D work, we have identified a novel way to monetise both the valuable rare earths and phosphates contained within this unique deposit for the magnet metals and LFP battery supply chains respectively“
As we build stocks of product and derivative product samples, we continue to research further improvement in grade and recovery metrics and develop ever more refined understandings of the performance of our product in third party processing facilities to derive the complete value-in-use.”
Durrant flagged that RareX will be updating the market on offtake and strategic partnering discussions, development and infrastructure updates and other milestones towards bringing Cummins Range into production.
The company’s Cummins Range sits in the East Kimberley region of Western Australia.
RareX maintains material investments in other ASX-listed companies, including Kincora Copper (ASX:KCC), Cosmos Exploration (ASX:C1X), and Canada Rare Earth Corporation (CVE:LL)
Write to Adam Drought at Mining.com.au
Images: RareX
