- Lycaon Resources (LYN) strikes a conditional heads of agreement to acquire the Stansmore rare earth element (REE) carbonatite project in Western Australia
- The project lies within the West Arunta region, where niobium-REE and iron oxide copper-gold discoveries have recently been made
- Lycaon and its subsidiary, West Arunta Resources, will issue one million LYN shares to director Thomas Langley, who owns the project, at 25 cents per share for the acquisition
- The company is also applying for two nearby exploration licenses that will be assessed for their prospectivity
- Lycaon shares have risen over 37 per cent since the Tuesday announcement, trading at 42 cents at midday AEDT on Wednesday
Lycaon Resources (LYN), through subsidiary West Arunta Resources, has entered a conditional heads of agreement to acquire the Stansmore rare earth element (REE) carbonatite project from director Thomas Langley.
The project lies within Western Australia’s West Arunta region, which is regarded as being highly prospective for copper, niobium and rare earths.
Recently, WA1 Resources (WA1) discovered a niobium-REE mineralised carbonatite intrusion in the West Arunta region, and Encounter Resources (ENR) discovered the Worsley iron oxide copper-gold (IOCG)-REE prospect.
In light of these discoveries, Lycaon Technical Director Mr Langley said the Stansmore magnetic target represented a “remarkable opportunity” to explore for REEs and IOCG mineralisation.
“I look forward to being part of the exciting developments in the West Arunta region exploring for critical minerals niobium and REEs,” Mr Langley said.
To acquire the project, Lycaon and West Arunta Resources will issue one million LYN shares to Mr Langley at a deemed issue price of 25 cents.
The acquisition is subject to shareholder and ministerial approvals.
In addition to the binding agreement, Lycaon Resources has applied for two exploration licenses in proximity to the Stansmore project.
The licences sit to the north and east of Stansmore and will be assessed for their prospectivity based on a review of existing — but limited — data.
If required, the company will plan exploration programs that will be undertaken upon the tenements progressing to grant.
Lycaon shares have risen over 37 per cent since the Tuesday announcement, trading at 42 cents at midday AEDT on Wednesday.