"Now China has it eye on another Heavy REE explorer TUC resources. As stated in the article:
"Sydney analyst Haris Khaliqi of Foster Stockbroking has put a “speculative buy” recommendation on heavy rare earths explorer TUC Resources (ASX:TUC) after it signed a financing deal with Shandong Provincial Bureau of Geology and Mineral Resources. The Chinese company will, in several stages, take new shares worth A$19 million to give it an eventual 50% stake in the rare earths joint venture covering eight tenements in Australia’s Northern Territory. The first stage will involve a A$4 million injection to take Shandong to 15%.
There are two main points here. One, it signals another move by China to locate heavy rare earths abroad as the country faces shortages in the future; better to mine them overseas yourself (or with a joint venture partner) than have to go cap-in-hand as a buyer in a seller’s market. Two, as Khaliqi points out, “importantly TUC has aligned themselves with a partner who has access to specialised knowledge of HREE clay deposits and processing technologies, which to date have been confined to China”."
TUC Price at posting:
11.0¢ Sentiment: Hold Disclosure: Held
