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Ark Mines Receives $4.5m in Government Backing for Sandy Mitchell REE Project in Northern Queensland

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By Colin Hay - 
Ark Mines ASX AHK Government Backing Sandy Mitchell REE Project Northern Queensland
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Ark Mines (ASX: AHK) has received a $4.5 million government grant to advance its Sandy Mitchell rare earths and heavy mineral project, 230 kilometres north-west of Cairns.

Managed by QIC, a state government-owned corporation with A$131 billion in funds under management, the Queensland Critical Minerals and Battery Technology Fund (QCMBTF) supports businesses in Queensland across the critical minerals supply chain.

Subject to shareholder approval, the QCMBTF plans to make an equity investment of $500,000 in Ark, with an additional $4m in up-front funding tied to royalties based on future sales from Sandy Mitchell.

Increased MRE Goal

Ark will use the new capital to accelerate the project, with Stage 3 in-fill drilling currently underway.

The company’s strategy aims to significantly increasing the project’s current mineral resource estimate of 71.8 million tonnes at 1,732.7 parts per million monazite equivalent.

With Ark targeting initial production in late 2027, the QCMBTF investment means the company is now fully funded to advance its near-term works program over the remainder of CY2025.

Sandy Mitchell contains all critical light rare earths as well as a wide range of heavy rare earths, and Ark plans to incorporate all work from the rest of 2025 into the Pre-Feasibility Study it expects to release early next year.

Extensive Collaboration

Managing director Ben Emery said the new investment follows an extensive period of collaboration between the parties and an in-depth due diligence process by the QCMBTF.

“With a busy works program scheduled for the second half of 2025, this investment provides Ark with an effective non-dilutive source of funding to accelerate development,” he said.

“Strategically, it also delivers long-term alignment with the state government’s policy objective to position the North Queensland region as a key supplier of the critical minerals used in global clean energy supply chains.”

Ark’s goal is to now establish itself as a leading Australian rare earths supplier to end-users in domestic and international markets.