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Bindi Metals picks-up ‘high quality’ critical REE project in Ontario

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By Lorna Nicholas - 
Bindi Metals ASX BIM Schryburt Lake rare earth REE Nb Zr REO Project northern Ontario Canada

Limited historical exploration at the new project returned up to 5.65% REO.

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Bindi Metals (ASX: BIM) emerged from a trading halt this morning with news it is acquiring a “high quality” rare earths project in northern Ontario, Canada.

Under a conditional sale and purchase agreement, Bindi will lock-in an 80% interest in the mining claims that comprise the Schryburt Lake REE-niobium and zinc project.

Schryburt Lake is within Ontario’s Superior Province, which is home to many world class REE deposits and projects.

Evaluation of historical drill samples revealed a 4.5m carbonatite pipe, which assayed up to 5.65% rare earth oxides (REO).

This result was from very limited REE sampling, and the mineralisation remains open in all directions.

Additionally, it contains a high neodymium and praseodymium to REO ratio of up to 34%, while up to 1.82% niobium has been collected from outcrop at the asset.

Bindi executive director Henry Renou says the company is “very excited” with the acquisition, which is consistent with its strategy of diversifying into critical minerals.

“The scale and geology of the project is similar to many world class REE mines hosted in carbonatite,” Mr Renou explained.

He added the company was “excited” to start work at Schryburt Lake, with planning under way for a summer field season.

Schryburt Lake acquisition terms

Bindi will pay a $60,000 fee in return for an exclusivity period over Schryburt Lake while it completes due diligence.

The company will then acquire the 80% interest in return for 2 million shares and a further 2 million performance rights in two equal classes.

Each performance right class (A and B) will convert into one share upon Bindi achieving the relevant milestone at the project.

Class A will be converted upon Bindi achieving a drill intersection larger than 10m with a minimum grade of 1% TREO, within two years.

Meanwhile, Class B will convert if Bindi achieves a JORC resource of more than 10,000t of contained TREO or equivalent within five years of the performance right issue.