Ionic Rare Earths (ASX:IXR) takeovers Seren Technologies, shares gain

April 04, 2022 11:32 AM AEST | By Ritwika

Ionic Rare Earths (ASX:IXR) takeovers Seren Technologies, shares gain — Image source: © Utah778 | Megapixl.com

Highlights

Ionic Rare Earths completes due diligence for acquiring Seren Technology today.

Seren Technology will offer technical support to IXR to improve its rare earth elements production business.

IXR’s share price gains over 7% on the ASX, backed by this update.

The shares of the metal exploration company Ionic Rare Earths Limited (ASX:IXR) traded 7.954% higher on the ASX today (4 April) at AU$0.095 per share at 11:12 AM AEST. Approximately 35.5 million shares of Ionic Rare Earths were traded so far in today’s trading session on the ASX.

The share price of Ionic Rare Earths has gained by 55% on the ASX over the past 12 months. On the other hand, Ionic Rare Earths’ year-to-date share price also gained by 86% on the ASX today (4 April).

What impacted Ionic Rare Earths’ share price on the ASX today?

Today, Ionic Rare Earths Limited has announced the successful completion of due diligence on the acquisition of 100% of Seren Technologies Limited.

The company announced on 8 December 2021 that it has signed a binding term sheet for the acquisition of Seren Technologies. Seren is a UK-based private company with unique and leading-edge rare earth separation and refining technology.

Followed by the completion of the due diligence, the company also executed a Share Purchase Agreement (SPA). However, the completion of the Share Purchase Agreement is subjected to necessary regulatory approval from the UK Investment Security Unit (ISU).

Ionic Rare Earths further informed that the acquisition of Seren will be based in Belfast, UK. This acquisition will highly complement the company’s strategy of becoming a vertically integrated participant in the formation of new magnet and heavy rare earth supply chains emerging across Europe and North America.

Harrison also added that Seren has identified several potential opportunities to progress rapidly from demonstration to commercial development of the technology for magnet recycling. It will now be explored with key supply chain stakeholders.

Image source: © Xtrekx | Megapixl.com

Lastly, Harrison mentioned that the acquisition of Seren will provide the company with an in-house test work capability to execute new test work programs. Therefore, the company expects this to complement the development of its refinery flowsheet. As a result, The Ionic Rare Earths team is engaging with the team of Seren to determine the next steps to help validation of key process chemistry and design criteria inputs for the Refinery Scoping Study.

Therefore, it can be assumed that the new update regarding Ionic Rare Earth’s acquisition of Seren Technology has driven the share price gain on the ASX today.

About Ionic Rare Earths:

Ionic Rare Earths Limited is an ASX-listed mining and exploration company engaged in the exploration of rare earth elements in the Mukuutu Project.

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