PERTH: OD6 Metals Ltd. has entered into an agreement to acquire the Quinn Fluorspar Project in Nevada, positioning the Australian company to supply the U.S. market with a mineral deemed critical for semiconductor manufacturing, defense applications and energy technology.
The acquisition includes a series of deferred cash and share-based payments tied to exploration and development milestones, allowing the company to advance the project with limited upfront risk, according to a statement released Wednesday.
Fluorspar, also known as fluorite, is the primary source of fluorine and is used in products ranging from aluminum semiconductors and lithium-ion batteries to nuclear fuel processing and missile guidance systems. The United States is 100% reliant on imports for the mineral, which was designated as critical under a 2017 executive order signed by then-President Donald Trump.
The Quinn project, located about 220 kilometers (137 miles) north of Las Vegas, includes multiple historic prospects with reported surface grades of up to 94% calcium fluoride in rock samples. Historic channel sampling at the Spar Mine prospect returned 6.1 meters at 78% CaF₂, according to the company.
Nevada is ranked as the top mining jurisdiction globally in the Fraser Institute’s Investment Attractiveness Index, and hosts other Australian-listed critical minerals developers including Sun Silver Ltd. and American Tungsten and Antimony Ltd.
OD6 said the project’s location offers access to West Coast ports, rail and interstate highways, as well as proximity to the U.S. Strategic Minerals Reserve.
Under the terms of the deal, OD6 will pay an initial A$75,000 for a 120-day option, extendable for an additional 60 days with a further A$25,000 payment. Upon exercise, the company will pay A$200,000 in cash and shares, followed by milestone payments tied to permitting, drilling and resource definition.
Deferred payments totaling A$3.25 million in cash and shares are tied to the definition of JORC-compliant resources, completion of a bankable feasibility study and the start of commercial production. The sellers will retain a 2% net smelter royalty on fluorspar production, with a buyback provision.
The company noted parallels with Tivan Ltd., an Australian fluorspar developer that has achieved a market capitalization near A$1 billion while supplying Asian markets. OD6 said it aims to serve the U.S. market, which has an estimated annual demand of 400,000 tons.
Global fluorspar demand is projected to outpace current production capacity by 40% to 70% by 2035, the company said, citing industry forecasts.
OD6 plans to conduct systematic drilling to delineate a resource, with permitting and drilling milestones tied to future payments under the acquisition agreement.
The company is also advancing rare earth and copper projects in Australia.