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- Codrus Minerals (CDR) expands its WA-based Karloning REE project – by 16 fold – as part of a farm-in agreement with Fleet Street Holdings
- The company’s 15 square kilometre acreage now covers 246 square kilometres
- FSH holds land directly to the northeast of Codrus’s project where no historic drilling has been conducted and only minor exploration works to date
- CDR is required to move towards a definitive feasibility study and define a mineral resource in the coming years
- Codrus shares last traded at 8.9 cents
Codrus Minerals (CDR) has today announced the expansion of its WA-based Karloning REE project – by 16 fold – as part of a farm-in agreement with Fleet Street Holdings (FSH).
FSH holds land directly to the northeast of Codrus’s project where no historic drilling has been conducted and only minor exploration works to date.
As a result, the company’s 15 square kilometre acreage now covers 246 square kilometres as part of a tenement acquisition strategy which also sees the company awaiting approval for further tenements yet.
Of particular interest to Codrus geotechs are two tenements that geotechs believe may boast high-grade rare earth elements in a fashion similar to those intersected in the company’s maiden drill run.
The results of that drill run turned over thick intersections of high-grade REEs of which some 25 per cent were comprised of high-value magnetic elements including neodymium and praseodymium, as well as the lesser known elements dysprosium and terbium.
Codrus announced the strategy would boost the company’s future commercial prospects as an explorer, describing the rare earths market as a commodity sector with outstanding fundamentals.
“Given that we are first movers in this district, it made strategic sense to expand our footprint quickly to make sure that Codrus is positioned to expand the scale of the mineralisation we have already discovered,” Codrus Managing Director Shannan Bamforth said.
As part of the deal, FSH is to receive $30,000 in the next week, as well as $30,000 worth of Codrus shares on top.
Codrus must expend $100,000 on exploration within the first 12 months and after achieving this minimum spend, can acquire a 51 per cent stage one interest by spending an additional $250,000 over the next two years.
The company must complete at least 1500 metres of aircore drilling. A further $250,000 payment will allow Codrus to acquire an 80 per cent stake – at this stage, Codrus intends to go ahead with resource definition and feasibility studies.
Fleet Street retains the right for a 1.5 per cent smelter royalty; should the resource prove to contain over 15 million tonnes of rare earths grading over 1000 parts per million, then Codrus must issue FSH a further one million shares.
Codrus Minerals shares last traded at 8.9 cents.
