The acquisition is part of ARR’s global objectives to create a rare earths and scandium supply chain
American Rare Earths (ARR) has acquired the rights to explore, develop, and process scandium minerals at the Split Rocks project in Western Australia.
For the acquisition of rights, ARR has executed a binding term sheet with Zenith, and other unrelated private parties.
Under the terms sheet, ARR will be granted an exclusive option to acquire scandium minerals to a maximum depth of 50 metres from surface within a portion of Zenith’s Split Rocks project.
The acquisition is part of ARR’s global objectives to create a rare earths and scandium supply chain.
American Rare Earths managing director Keith Middleton said: “Scandium, a rare and highly valuable mineral, has been discovered through ARR’s recent exploration and development activities at both of the Company’s Arizona and Wyoming Rare Earths Projects in the USA.
“Additional work is currently being undertaken to validate the scandium resource in its own right at both projects. Zenith minerals, from whom ARR originally acquired the Wyoming Project, uncovered attractive Scandium grades at their Split Rock Project in Western Australia.
Zenith, through its wholly owned subsidiary, Black Dragon Energy (Aus), holds 100% of the scandium tenement.
Scandium mineralisation is said to be hosted within a sequence of ultramafic rocks, which have been identified by Zenith for their gold potential.
Zenith will receive a royalty of 3% of the net smelter generated from any scandium minerals or scandium mineral resources, after ARR exercises its option to the scandium project.
Currently, ARR is focused on capturing the rare earths and scandium mineral potential at its La Paz and Wyoming projects in the US.
The acquisition of rights to explore scandium, nickel, and cobalt at the Split Rocks project is expected to expand ARR’s scandium portfolio.
Middleton said: “While the Company remains focused on unlocking the rare earths and scandium mineral potential in the USA, the acquisition of Scandium Mineral rights over the Split Rock Project in WA presents a unique opportunity for the Company to expand its Scandium portfolio, and provides further basis for developing our REE strategic materials strategy in the future.”
In May, ARR announced the acquisition of 100% ownership of the Searchlight rare earth element (REE) project in Nevada, US.
The project is located close to MP Materials’ mine, which is said to the only operating rare earths mine in the US.