Caspin Resources in Agreement with ASM to Evaluate Mt Squires REE Potential

THE BOURSE WHISPERER: Caspin Resources (ASX: CPN) has struck a deal with Australian Strategic Materials (ASX:ASM) to enter a Joint Venture of the rare earth element (REE) rights on Caspin’s Mount Squires project in Western Australia.

Under the terms of the agreement Caspin is to retain a 25 per cent free carried interest in the Mount Squires REE potential and receive milestone payments of up to $1.5 million.

Caspin explained the deal will enable it to maintain focus on nickel, copper and gold at Mount Squires whilst retaining a ‘free carried’ interest (to decision to mine) in the project’s REE potential.

Australian Strategic Materials is lined up to carry out REE metallurgical test work and drilling at Mount Squires over the next 3-9 months, with minimum expenditure commitments to be met by ASM thereafter to progressively earn up to 75 per cent interest in the REE rights.

“We’re excited to be collaborating with ASM on the rare earth opportunity at Mount Squires, a reputable and specialist REE company,” Caspin Resources managing director Greg Miles said in the company’s ASX announcement.

“Caspin will retain exposure to the REE potential without any funding obligation and potentially receive milestone payments.

“This will allow Caspin to maintain its focus on the nickel, copper and gold potential at Mount Squires and other acquisition opportunities.

“We believe that the high proportion of high-value, heavy rare earths, close to surface in an area with no previous exploration for rare earths, sets the Mount Squires REE project apart from its peers.”