Australian Strategic Materials (ASX:ASM) has teamed up with Caspin Resources (ASX:CPN) by way of agreement for the latter to provide ASM the chance to earn-in to 75% of its REE project.
ASM is interested in Caspin’s Mt. Squires project, which it sees as a “potential supplementary REE supply.”
The company noted high concentrations of ‘heavy’ earths present at Mt. Squires – subject, naturally, to metallurgical testing and drilling.
ASM investors liked the news with shares up 5.74% to $1.47/sh near lunchtime trade.
Caspin, meanwhile – a company for which the share price has posted negative 1Y returns -73.85% – is up 16.44% to 8.5cps.
It’s possibly the best saving grace long-term Caspin holders are going to get in the near-term.
Caspin shares rocketed to $2.50 per share in 2021 and caused much hubbub, but a look at the 5Y chart shows this was just an anomaly (read: speculative overvaluation.)
The company floated at 50c; hit 60c in early 2023, and has since steadily declined to where it sits today at 8.5cps.
That Caspin’s glory days on the junior explorer are well and truly over is exemplified in how little share turnover has pushed the company up 16% today – only $46.3K worth of trades as at lunchtime on Wednesday.
Australian Strategic Materials is clearly the real winner of this deal with a market cap far outsizing Caspin’s up 5.7% on $351K worth of share turnover at lunchtime Wednesday.
But, it’s still early days. ASM will decide over the next “3 to 9 months” whether it wants to actually earn-in a 75% stake, based on met tests and drilling.
ASM last traded at $1.47/sh.