- Red Mountain is set to purchase a high grade kaolin project in Western Australia
- In August, the company proposed to purchase a WA based rare earths project
- The Director of the company said the HPA and rare earths market is an attractive place for producers to be
- Red Mountain’s share price is down 14.29 per cent today, currently sitting at 0.6 cents apiece
Mining company Red Mountain has initiated the first steps to purchase full interest in the Mt Kokeby Kaolin Project, Western Australia.
Red Mountain is purchasing the project from HPA Resources, and details it has potential for upside due to its primary deposit containing many untested areas.
Historically, the project has delivered results of aluminium oxide grades exceeding 30 per cent. These high-grades make it suitable for low capital expenditure operations.
According to Red Mountain, the location lends itself well with established infrastructure, including rail and truck options to the Port of Fremantle and Kwinana.
The company aims to tap into the growing High Purity Alumina market, capitalising on its high value.
In August, the company also proposed to purchase a W.A based rare earths project, which is also prospective for nickel and cobalt.
“The introduction of two high-quality speciality metal Western Australian projects is an exciting development for the company,” Red Mountain’s Director Jeremy King said.
“Our view is that both the HPA and Rare Earths markets are attractive places for a producer to be,” Jeremy continued.
Shares in Red Mountain have slumped today, following announcing its intent to purchase the kaolin project. The company’s share price is currently down 14.29 per cent to sit at 0.6 cents apiece, as of 1:48 pm AEST.