RareX to acquire strategic stake in Canada Rare Earth Corporation as part of global expansion
RareX managing director Jeremy Robinson said the company would explore mutually beneficial opportunities with Canada Rare Earth Corporation.
RareX (ASX: REE) is looking to expand its presence in the global rare earth space after agreeing to acquire a stake in TSXV-listed Canada Rare Earth Corporation.
The company has reached an agreement to purchase Talaxis Group Holding’s entire 12.3% interest in Canada Rare Earth.
Under the deal, RareX will pay Talaxis $50,000 for the option to acquire the 12.3% issued capital in Canada Rare Earth before 18 February next year.
If RareX proceeds with the option, it will pay C$0.04 per share – equating to a purchase price of C$991,186.32 (A$1.02 million).
About Canada Rare Earth
According to RareX, Canada Rare Earth is developing an integrated business within the global rare earth industry.
The company is building a supply chain connecting mining to rare earth concentration, separation and refining facilities and major international customers.
Canada Rare Earth has partners with a track record of designing, building and operating rare earth refineries with annual output ranging from 2,500 tonnes per annum to 12,000tpa.
RareX noted the refineries are built and operate to environmental and sustainability standards that meet or exceed requirements.
Acquisition rationale
RareX claims it is attracted to Canada Rare Earth for its “deep knowledge” of the global rare earth sector.
Canada Rare Earth also has access to refining capacity outside of China, can construct and operate its own refineries and is actively involved in rare earth concentrate trade.
RareX managing director Jeremy Robinson said the company would explore mutually beneficial opportunities with Canada Rare Earth, which includes looking at downstream processing options for its Cummins Range project in Western Australia.
“At a time of continued strength in rare earths prices and increasing demand globally, this is an exciting opportunity for RareX to become involved at other levels of the global rare earths industry through a possible partnership with an experienced global group such as Canada Rare Earth,” he added.