SYDNEY, AUSTRALIA: Cadoux Limited (ASX: CCM) has announced the acquisition of a 50% stake in Minhub Operations Pty Ltd (MOPL), an emerging name in rare earth production.
The acquisition, which aligns with the Australian sovereign supply chain objectives, marks the completion of the first stage of a Share Purchase Agreement (SPA) outlined in a previous Heads of Agreement (HOA).
The deal, which was initially set forth on 9 May 2023, involves the joint development of the Minhub mineral sands processing facility located in Darwin. Cadoux’s investment includes the issuance of 4 million shares as part of the stage one acquisition, following thorough due diligence and the fulfillment of several conditions precedent.
Looking ahead, Cadoux is set to collaborate closely with MOPL to achieve the project milestones necessary for the second stage of the acquisition, which would increase Cadoux’s interest in MOPL to a full 100%.
MOPL, in partnership with Arafura Rare Earth Limited (ASX: ARU), is developing a third-party downstream heavy mineral sands and rare earths production facility.
This facility aims to process xenotime and monazite concentrates to serve select markets and supply ARU with rare earths feedstocks destined for premium product upgrades.
Roland Hill, Managing Director of Cadoux, expressed optimism about the venture, stating, “While High Purity Alumina (HPA) remains our primary focus, the Minhub project presents a unique opportunity and a distinct market advantage in the heavy rare earths sector. Our collaboration with MOPL since last May has been fruitful, and we are excited about the project’s progress and the market potential of the rare earth streams produced.”
The Minhub project stands as a testament to Cadoux’s commitment to critical minerals development and represents a significant step forward in the company’s expansion into the rare earths industry.