Ann: RareX purchases option to acquire interest in CREC, page-4

RareX purchases option to acquire significant interest in Canada Rare Earth Corporation

Strategic opportunity provides RareX with a potential pathway to enhance future development options for its Cummins Range Rare Earths Project in WA

RareX Limited (ASX: REE) (RareX or the Company) is pleased to announce that it is reached agreement with Talaxis Group Holdings (Talaxis) securing an option to acquire its entire stake in TSV-Venture Exchange listed rare earths company Canada Rare Earth Corp. (CREC).

Under the terms of the agreement, RareX will pay Talaxis A$50,000 for an option to acquire 24,779,658 shares (12.3% of issued capital) in CREC before the 18th February 2021 for C$0.04 per share, for a total amount of C$991,186.32. CREC is aiming to develop a vertically and horizontally integrated business within the global rare earth industry focused on building a supply chain connecting mining operations to rare earth concentration processes to rare earth separation and refining facilities and to major international customers.

CREC’s partners have a proven track record of designing, building and operating rare earth refineries with annual product output ranging from 2,500 to 12,000 metric tons per year, including strategically located refineries in Thailand and Laos.

The refineries are designed, built and operated to environmental and sustainability standards which meet or exceed the requirements in the leading countries of the world. RareX is attracted to a potential investment in CREC due to:
1. Its deep knowledge of the global rare earths sector;
2. Its access to ex-China rare earth refining capacity;
3. Its ability to construct, own and operate rare earth refineries; and
4. Its active involvement in the trade of rare earth concentrates, particularly monazite.

RareX intends to work with CREC both to develop the CREC business and to explore refining options for concentrates produced from the Company’s flagship Cummins Range Rare Earths Project in WA as RareX looks to advance the project in 2021. RareX Managing Director, Jeremy Robinson, said: “We look forward to engaging with CREC to explore mutually beneficial opportunities including downstream processing options for our rapidly growing Cummins Range Project that could provide us with a fast-track pathway to production.

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 CREC.”

Interesting acquisition, probably helps REE in terms of the end to end production of monazite.