The sale funds will be used to progress the Butcherbird Manganese Project, which is currently in development.
On September 27, 2019, the company announced the sale of the Cummins Range Project for total consideration of $3 million.
The first tranche of $1 million was received at settlement and the company has now received the second tranche of $1 million, which was settled via the payment of $500,000 in cash and the issue of 7,462,687 fully paid shares in the capital of RareX at a deemed issue price of 6.7 cents per share.
These shares are subject to a six-month voluntary escrow period.
The sale agreement also includes future payments:
- Within 36 months of settlement and subject to the completion of a positive bankable feasibility study (BFS) on the Cummins Range project, RareX must pay or issue $1 million in cash or shares (or a combination) to a total value of $1 million (further deferred consideration); and
- If a BFS is unable to be completed within 36 months of the date of settlement, the further deferred consideration is not payable and RareX will, in lieu, grant E25 a 1% Net Smelter Return Royalty on future production from the Cummins Range project capped at $1 million.