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Nanocap Pearl Gull Iron (ASX:PLG) has blamed low rare earths prices on international commodity markets in announcing its decision not to acquire Huemul.
In June this year, the company identified geological particulars at Huemul’s acreage that it said were similar to Chinese REE deposits. It had been hoping to farm-into the play.
Huemul itself, in June, was seeking to acquire up to 80% in a Chilean company that actually owned the permit rights in question across five tenements.
But the company confirmed on Monday that deal is no more. The culprit, according to Pearl Gull, is continued weakness in rare earths prices.
“Due to current market sentiment and headwinds in the market price for Rare Earth Elements, the Company considers it no longer in its best interests to farm-in to the La Marigen Rare Earths Project in Chile,” the company wrote.
“The proposed appointment of Dr John Mair to the Pearl Gull Board, pursuant to the Acquisition, will also not occur.”
Pearl Gull said it will continue to progress its operations at Cockatoo Island.
PLG last traded at 1.3cps.
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