Ionic Rare Earths Limited (IXR.AX) Moves to 94% Ownership of the Makuutu Rare Earth Project

Perth, Australia (ABN Newswire) - Ionic Rare Earths Limited (ASX:IXR) (OTCMKTS:IXRRF) is pleased to advise it has signed a share purchase agreement ("SPA") with Rare Earth Elements Africa (Pty) Ltd ("REEA") under which IonicRE will acquire a further 34% interest in local Ugandan operating entity Rwenzori Rare Metals Limited ("RRM") ("Transaction") which owns the Makuutu Rare Earths Project ("Makuutu").

IonicRE has an existing 60% interest in the Project prior to the Transaction.

- IonicRE has signed a conditional share purchase agreement to acquire an additional 34% interest in the strategic Makuutu Rare Earths Project, taking its ownership to 94% on completion;

- Makuutu's basket contains 71% magnet and heavy rare earths content, and is one of the most advanced ionic adsorption clay (IAC), heavy rare earth projects globally, available as a source for new supply chains emerging across Europe, the US and Asia;

- This is a watershed moment for the Company with ownership at a 94% interest, opening up a multitude of potential funding and offtake scenarios in financing the development of the Project;

- Third party interest in partnering with the Company remains very strong with discussions already underway; and

- First Mixed Rare Earth Carbonate (MREC) product on track to be produced from the Demonstration Plant in Q1 2024 to send to potential customers and offtake parties for evaluation.

Completion of the Transaction ("Completion") will see IonicRE's interest in Makuutu increase to 94%, which is a considerable milestone for the Company.

The Company expects this to be a substantial step forward in progressing the financing and offtake discussions with multiple third parties who have expressed strong interest in partnering with the Company to access the heavy rare earth product achieved through the development of the Project.

IonicRE's Managing Director, Mr Tim Harrison, noted the significance of the transaction.

"Makuutu isn't just any rare earth project; it's a strategic asset, and importantly one of the most advanced ionic adsorption clay projects globally. Makuutu can unlock near term supply of heavy rare earths into the advanced manufacturing demand that far exceeds existing supply. It has immediate strategic value to these new supply chains forming.

With a dominant 71% magnet and heavy rare earth basket content, Makuutu stands tall as one of the most advanced heavy rare earth projects globally. Positioned strategically, it's poised to fuel the emerging supply chains across Europe, the US, and Asia.

This is an exciting time for Makuutu as we near production of first mixed rare earth carbonate from the Demonstration facility in the first quarter of 2024, and the increased ownership will enable IonicRE to advance and accelerate discussions with strategic investors, offtake partners and financiers."

*To view full details of the share purchase agreement, please visit:
https://abnnewswire.net/lnk/1JUSX47D

About Ionic Rare Earths Limited:

Ionic Rare Earths Limited (ASX:IXR) (OTCMKTS:IXRRF) is focused on developing its flagship Makuutu Rare Earths Project in Uganda into a significant long life, low-cost, supplier of high-value critical and heavy rare earths.

Makuutu is an advanced-stage, ionic adsorption clay-hosted project highlighted by near-surface mineralisation, significant exploration upside, excellent metallurgical characteristics and access to tier-one infrastructure.

The ionic adsorption clay-hosted geology at Makuutu is similar to major rare earths projects in Southern China, which are responsible for the majority of global supply of low cost heavy and critical rare earths, specifically the high value magnet metals (Dysprosium and Terbium) Heavy Rare Earths (>98% originating from ionic clays). Metallurgical testing at Makuutu has returned excellent recovery rates, which provide multiple avenues for a simple process route.

Makuutu is well-supported by tier-one existing infrastructure which includes access to major highways, roads, power, water and a professional workforce.

Rare Earths will play a critical role in the future of clean energy. Rare Earths are a key ingredient in the permanent magnets found in wind turbines and electric vehicles.

IonicRE is led by an experienced and proven team, who have the capabilities to deliver Makuutu into production and realise value for all stakeholders.

Source:
Ionic Rare Earths Limited

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