American Rare Earths Ltd (ASX:ARR) has amended the share purchase agreement with Zenith Minerals Ltd (ASX:ZNC) (FRA:ZCB) to acquire 100% of Zenith’s wholly-owned Laramie Rare Earth Elements (REE) Project in Wyoming, USA.
The parties have revised the completion date for the acquisition to June 30, 2021, from December 31, 2020, due to delays by US authorities in transferring titles to mineral leases.
This purchase includes ARR acquiring all data, including samples and maps, associated with the Laramie REE Project, and exploration permits, which are precursors in Wyoming to granting of mineral leases.
The project is held wholly by Zenith’s Australian subsidiary, Wyoming Rare Pty Ltd.
“Market leadership strategy”
Laramie will be ARR’s second rare earths project in the USA, along with its flagship La Paz Project in Arizona where a major field program is planned for the first half of 2021.
ARR managing director Keith Middleton said: “The planned Wyoming addition reflects ARR’s long-term strategy to build market leadership in the sector amid US’s declaration of critical metals as strategic to that country’s economic future.”
Wyoming is home to several major mining operations and is historically known to host rare earths and the Laramie project area has excellent road and rail infrastructure.
The company is confident that the project area shows some similarities that can complement its La Paz Rare Earths Project.
The total project purchase price of 2.5 million ARR ordinary shares (price A$0.02 each) plus A$50,000 cash, remains unchanged and was approved by ARR’s shareholders at the Annual General Meeting on November 11, 2020.
Half of that consideration, 1.25 million ordinary ARR shares, and A$25,000 cash, has been transacted by ARR on the signing of the amended agreement.
The remaining share transfer and cash obligations will be fulfilled on receipt of approval from regulators, to transfer to ARR on or before June 30, 2021, the awaited mineral leases.
Appointment of directors
Existing ARR directors Keith Middleton and Francis Creagh O’Conner will take over from previous Wyoming Rare Pty Ltd directors Michael Clifford, Stanley Macdonald and Julian Goldsworthy who will be stepping down.
In addition, Wayne Kernaghan is to assume the role of company secretary of Wyoming Rare with Chen Ong stepping down from that role.