The spin-out of this non-core asset allows for a focused strategy to explore and finance early-stage rare earth properties by South American Rare Earth while looking for other rare earth opportunities in South America.
Following the completion of the property spin out and offering, U3O8 will hold approximately 19.9% of the shares issued in South American Rare Earth as well as a 2% net smelter royalty in return for its interest in the Jasimampa property, which is being transferred to South American Rare Earth.
U3O8 will initially manage the exploration program and corporate development opportunities of South American Rare Earth, and will be reimbursed for funds used to explore the Jasimampa property.
Reconnaissance exploration of the Jasimampa property has defined a core zone that has an average grade of approximately 1.1% total rare earth oxides (TREO).
The company said that mineralization appears to extend beneath shallow soil cover and drilling is required to further evaluate the extent and grade of the mineralized area.
The exploration target is a carbonatite intrusive center that contains cerium, lanthanum and neodymium-bearing minerals.
Approximately, 5% of the TREO consist of heavy rare earth elements (HREO), according to the company.
