18th May 2022 18:22
East Star Resources PLC - gold and copper exploration company focused on Kazakhstan - Announces farm-in to the Talairyk ionic absorption clay heavy rare earth project in Kostanay, Kazakhstan.
The farm-in allows for low-cost entry into a de-risked deposit, containing 19,962 tonnes of contained total rare earth oxides.
The terms of the farm-in includes no cash payments, with a first tranche of USD250,000 in shares for a 51% interest, after expenditure of USD500,000 including planned drilling and initial metallurgical test work.
The second tranche will be for another USD250,000 in shares for 75% interest in the mine after expenses of a further USD500,000. Additional expenditure will secure up to 90% of the asset on a contribute or dilute basis.
"The deal structure presents very little risk to East Star given no share-based payments are made until a significant amount of work is done. This will include re-drilling much of the existing deposit, extensional exploration and conducting initial leach test work. We have already begun the process to get all approvals for drilling and are very excited to start work to quickly advance this asset in the critical mineral space," said Chief Executive Officer Alex Walker.
Current stock price: 3.80 pence
12-month change: down 22%
By Dayo Laniyan; [email protected]
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