- Red Mountain Mining Limited (ASX:RMX) seems to be swiftly moving up in value with the share price of the Company recently reaching a high of $0.018.
- The Company recently added another feather to its cap with the acquisition of Mt Mansbridge Heavy Rare Earths Project.
- RMX will acquire the project by issuing 50 million shares to ARD Group along with a cash payment of $100,000.
- The transaction is subject to shareholders’ approval, and the miner would soon dispatch a notice of meeting to seek approval for the transaction.
Red Mountain Mining Limited (ASX:RMX) is swiftly climbing the ASX price ladder with the stock reaching the levels of $0.018 (Intraday high on 26 October 2020) from $0.002 (intraday low on 1 April 2020).
While steady progress on the business front seems to be a sentiment booster for the stock, RMX recently added another feather to its cap with the Company acquiring full ownership of Mt Mansbridge Heavy Rare Earths Project.
Acquisition of Mt Mansbridge Heavy Rare Earths Project
The Company recently inked an agreement with ARD Group, the vendors of the project: consisting of three West Australian tenements containing targets prospective for heavy rare earth elements (or HREE) and nickel-cobalt.
- For acquiring the complete ownership of the project, RMX would now issue 50 million shares to ARD; and,
- A cash payment of $100,000, of which, $50,000 is payable immediately while half of the payment would be paid upon shareholders’ approval for the transaction.
The Rare Earth Market Recap
The rare earth market is once again witnessing a boom with market speculating that China might restrict further material to the United States growing strong.
The importance of the rare earth as strategic minerals is not alien to any astute investor, and the recent $1.5 billion bid by Wesfarmers Limited (ASX:WES) for Lynas Corporation (ASX:LYC), further throws light on the importance of rare earth elements in the global context.
With China currently dominating the rare earth space with over 80 per cent of the global supply, the global supply concerns are taking strong roots among prime economies like the United States.
The recent push by the United States, to develop in-situ mines and lock-in trades with countries other than China for the rare earth supply, has resulted in a strong global interest in the identification and development of non-Chinese sources of rare earth.
While the market for rare earth metals is hot, the recent acquisition of a rare earth project by the Company is uplifting market sentiments around RMX on the exchange.
Mt Mansbridge Project and Related Plans
The project is located in the Kimberly region with an area of ~ 130km south-east of the township of Halls Creek.
- At present, the project has three contiguous granted exploration licenses covering a total area of 280km2, and tenements of the project lie ~ 40km from the Browns Range Project – operated by Northern Minerals Limited (ASX:NTU).
- The Company believes that the presence of the rare earth elements mineral xenotime in the Killi Killi Prospect has been overlooked, which the miner now plans to capitalise.
- Furthermore, as the necessity for rare earth elements is presently strong over robust demand for battery minerals, RMX plans to fast track the exploration and development of the project.
The stock of the Company last traded at $0.015, up by 7.14 per cent against its previous close on ASX.