Ionic Rare Earths Limited (ASX: IXR) has entered into a Binding Agreement with ASX listed Viridis Mining and Minerals Limited (ASX: VMM) to form a 50:50 joint venture company with the aim of establishing a significant leading role in the future global supply chain for Rare Earth Elements (REE) via the leveraging of intellectual property (IP) and skill set of IonicRE and the global assets of Viridis
The joint venture agreement is seen as an outstanding opportunity for IonicRE to advance the strategy of the company to become a leading supplier to the western world, of high quality, secure and dependable magnet and heavy rare earths, critical to the multitude of dependent industries and energy transition affecting billions of people around the globe.
Forming a 50:50 Joint Venture with Viridis, IonicRE secures strategic opportunity leveraging their technology and IP to do so ensuring a successful outcome for both companies and for all stakeholders. This joint combination advances the growth strategy for both companies by several years and draws on the support and alignment of several state agencies of Brazil, a nation that is both rich in rare earths and aims to become a global leader in rare earth production and supply.
Both companies will co-fund the JV Co and the proposed Brazilian production facility on a 50:50 basis and a Scoping Study is targeted for completion by the end of 2024. Pending a decision to proceed the JV Co would then aim to complete a preliminary feasibility study (PFS) within the following 18 months.
Integrating world-class geology with world-leading technology both companies recognize that this opportunity brings a stronger sum-of-the-parts operation combining assets, skillsets, IP, technology, personnel, and enterprise, than by progressing independently. Thereby accelerating their respective business plans and aligning with the RE supply chain strategic ambitions of Brazil.
Recently IonicRE announced the successful production of rare earth oxides (REOs) from its magnet recycling facility in Belfast, producing 11.5kg of 99.8% grade didymium (NdPr) oxide and demonstrated continuous production capability as part of a UK Government supported programme in collaboration with Ford Motor Company and Less Common Metals.
Viridis’ Colossus Ionic Adsorption Clay REE Project in Brazil is located within the same alkaline complex as Meteoric Resources’ high grade Caldeira Project, and Viridis has recently announced two MoU’s with the state government of Minas Gerais and the Municipality of Pocos De Caldas to fast-track regulatory approvals and infrastructure requirements to streamline the projects advancement.
Colossus has the scope to be a world class Ionic Adsorption Clay (IAC) REE deposit where drilling programmes are defining potential for a very large IAC resource and recent metallurgical testwork has delivered very strong results including: 11.9m @80% Nd-Pr extraction, 11.0m @66% Dy-Tb extraction and 17.9m @71% TREE-Ce (total rare earth element less cerium) extraction, all from 3.3m.
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