- Reach Resources (RR1) enters a conditional Binding Heads of Agreement (HoA) to acquire all the shares in Critical Elements
- Critical Elements holds two exploration licences in the Gascoyne Province of Western Australia
- Small-scale mining has been periodically undertaken with previous exploration primarily focused on tantalum-niobium-beryl-mica mineralisation and to a lesser extent, uranium
- Total payable consideration for the acquisition is 40 million fully-paid ordinary shares, with completion subject to final due diligence
- Shares in Reach are steady on the market and are trading at 0.9 cents
Reach Resources (RR1) has entered a conditional Binding Heads of Agreement (HoA) to acquire all the shares in exploration company Critical Elements.
Critical Elements holds exploration licences EL 09/2345 and EL 09/2377 in the Gascoyne Province of Western Australia.
Historically, the Gascoyne Province has produced significant quantities of bismuth, tantalum, niobium, mica and beryl from coarse-grained pegmatites.
Small-scale mining has been periodically undertaken with previous exploration primarily focused on tantalum-niobium-beryl-mica as well as uranium, to a lesser extent.
The total payable consideration for the acquisition is 40 million fully-paid ordinary shares.
Completion is subject to final due diligence, which Reach is to complete within the next 20 days.
Once acquired, Reach will undertake satellite imagery interpretation to map the extent of the historical mining activities and field exploration and sampling of pegmatites to understand grade distribution.
The pegmatites will then be drill tested to determine their geometry and mineralisation potential.
Shares in Reach were steady on the market and were trading at 0.9 cents at 12:12 pm AEDT.