Ionic Rare Earths’ (ASX:IXR) retention licence approved for Makuutu

• Ionic Rare Earths (IXR) application has been approved for a retention licence at its Makuutu Rare Earths Project in Uganda
• The Ugandan Directorate of Geological Survey and Mines (DGSM) has approved Exploration Licence 1766 to a retention licence
• This approval aligns with IXR’s strategy to speed up the development of Makuutu
• Additionally, IXR is awaiting the outcome of the exploration licence application for TN03575, which will increase the size of Makuutu
• On the market, Ionic closed up 3.13 per cent at 3.3 cents per share

Ionic Rare Earths (IXR) has had its application approved for a retention licence at its Makuutu Rare Earths Project in Uganda.

The Ugandan Directorate of Geological Survey and Mines (DGSM) has approved Exploration Licence 1766 to a retention licence.

A retention licence is an intermediate licence between an exploration licence and a mining licence. It allows activities such as intensive exploration, research and other development activities required to demonstrate the economic viability of mining.

This approval aligns with IXR’s strategy to speed up the development of Makuutu.

IXR will move to 60 per cent ownership of Makuutu once the feasibility study is completed, which is expected in October 2022, and has the pre-emptive right over the remaining 40 per cent stake in the project.

The licence has been granted for three years and a phase four drilling program has relocated all three drill right onto RL00234.

Infill drilling has progressed and this has the potential to convert nearly 100 million tonnes of inferred resource to indicated resource classification alone.

Additionally, IXR is awaiting the outcome of the exploration licence application for TN03575, submitted in mid July, which will increase the size of the Makuutu tenement to about 300,000 hectares.

On the market, Ionic closed up 3.13 per cent at 3.3 cents per share.