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Kimberley Rare Earths looks to mergers and acquisitions to strengthen rare earth holdings

Last updated: 12:30 20 Mar 2012 AEDT, First published: 11:30 20 Mar 2012 AEDT

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Kimberley Rare Earths (ASX: KRE) is reviewing opportunities for mergers and acquisitions to complement the company’s rare earth exploration and development assets.

The company is focused on projects that have near term cash flow potential.

Kimberley has interests in the Cummins Range rare earths project in Western Australia and the Malilongue heavy rare earths project in Mozambique.

The process is being supported by a specialist mergers and acquisitions advisory firm.

Last month Kimberley delivered an interim 18% increase in contained total rare earth oxides to 85,000 tonnes at Cummins Range following reverse circulation drilling carried out in 2011.

The addition of new drilling data and the application of a more rigorous geological model resulted in a 17% increase in overall tonnage and a slight improvement in grade.

In addition, Kimberley announced the discovery of multiple heavy rare earth oxide exploration targets at Malilongue.

Strong comparisons have been drawn between the Malilongue project and Quest Rare Minerals’ (TSX-V: QRM) Strange Lake pegmatite-hosted deposit in northern Quebec.

Strange Lake hosts an Indicated Resource of 51 million tonnes at 1.16% total rare earth oxides (TREO) within a total Inferred Resource of 230 million tonnes at 1% TREO.

Kimberley holds a 25% interest in Cummins Range and a 40% interest in Malilongue.

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