Auxico Resources Canada Inc. (CSE: AUAG) has successfully executed the company’s third and fourth trades of a cumulative 432 tonnes of rare earth concentrates (monazite sands) from the Democratic Republic of the Congo (DRC).
The company sold a total of 720 tonnes of monazite since April of this year, including the latest trading operations, representing a total provisional value of US$3.8 Million As per the signed sales agency agreement with Central America Nickel (CAN), Auxico will retain a commission equal to 15% of the sales price. Please see below the highlights of the latest trade operations from the DRC:
- The material from the third and fourth trades were sold for a total provisional value of US$2.1 Million. A total of US$1.1 Million has been paid, while the balance will be settled upon delivery of relevant contractual documents and the material arriving at the final destination.
- Initial testing on samples of the material indicated an average grade of 14.01% Neodymium, and a ~60% total rare earth oxide content (TREO). Samples of the material will be analysed by SGS South Africa, and the results are expected within the next 10 days.
- The company’s objective is to increase the export to 1,000 tonnes per month in the next quarter. At current market prices of US$6,000 per tonne, this would represent a yearly sale value of ~US$72 million, of which Auxico will retain a 15% commission.
- The rare earth concentrates contained in the non-radioactive monazite sands are purchased from various cooperatives in the province of North Kivu, DRC.
“We are very pleased to see the latest trades of rare earth concentrates being finalized, which further validates that the rare earth sale operations from the DRC are a sustainable source of revenue for the company,” CEO and President, Frederick Kozak, said.
“The project has one of the highest TREO grades of any developing rare earth project hosted in monazite sands and ready for direct shipping without prior concentration, which positions Auxico as a leader in the rare earths export market.
“The company anticipates the sale of monazite to ramp-up to 1,000 tonnes per month by the end of 2022, and it continually works to ensure operations in the DRC are ethically sourced and with full traceability.”
Auxico controls a total of 1,482 hectares in the province of Vichada, Colombia, where the Company made discoveries of high-grade concentrates with total rare earth oxide content exceeding 55%. The company is in the process of obtaining the environmental and exploitation permits.
In addition, Auxico has a joint venture agreement for the Massangana tin tailings project located in the province of Rondônia, Brazil, where the Company intends to build a 2,500 tonne per day processing facility that is projected to produce on a yearly basis 37,500 tonnes of monazite, 6,000 tonnes of cassiterite, 90,000 tonnes of ilmenite and 13,500 tonnes of columbite. A recent economic forecast commissioned by the company and prepared by the Brazilian independent company PrimeStar has projected yearly revenues of US$300 million.
For further information please visit: https://www.auxicoresources.com/
