Corcel Plc, a UK-based extractive industries exploration and development company, has announced the sale of a 20% interest in its Mt. Weld Rare Earth Element project to Extraction Srl, an Italian private company, for AUD$1,000,000.
Extraction Srl is a shareholder in Corcel, currently holding an interest of 9.61%. The sale has been agreed with the consent of Riversgold Ltd (RGL), which has waived its pre-emption rights over the sale.
Following the sale, Corcel will have an 80% interest in the project, pending the results of the first earn-in period. During this period, RGL may earn up to 50% of the project by funding the current work programme and spending AUD 500,000 over a twelve-month period. If the earn-in period is completed, the resulting shareholdings would be RGL 50%, CRCL 30%, and Extraction Srl 20%, with all parties being responsible for paying their proportional share of future costs at the project.
The Board of Corcel is currently considering the use of proceeds from the partial sale of Mt. Weld, and further announcements will be made as appropriate. The company’s Chairman, James Parsons, expressed his delight with the partial de-risking of the Mt. Weld asset ahead of drilling results at the project, adding that the company would now focus on its first transaction following its recent pivot to oil and gas.
The Mt. Weld Rare Earth Element project covers 171 hectares in size and is located 1.4 km west-north-west of Lynas Rare Earths Limited’s Mt. Weld REE Mine near Laverton in Western Australia. The tenement is predominantly covered by recent transported sediments obscuring the underlying geology. Four discrete undrilled magnetic features, potentially representing carbonatite intrusive complexes, have been interpreted from open file high resolution magnetic surveys and warrant further investigation.
The joint venture partners have recently initiated a drilling programme at Mt. Weld, and additional announcements on these developments will be made in due course.