ASX-listed miner Locksley Resources has closed the previously announced acquisition of the Mojave project, a rare-earth elements (REE) project in California, from Enigma Strategic Minerals.
The deal saw Locksley purchasing a 100% interest in Enigma.
Via its subsidiaries, Enigma owns 201 mineral claims that constitute the North and South blocks of the project, which is in the Mojave Desert. The company is also the owner of another five mineral claims, which constitute the El Campo prospect area.
According to Locksley, the Mojave project has the potential to host several REE deposits, which can help in powering technological innovations and enable advancements in renewable energy, electronics and defence systems.
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It includes three areas, comprising the North block with 164 claims covering 14.9km²; the South block with 32 claims totalling 3.5km²; and the El Campo prospect, which is spread across 0.34km² and contains five claims.
The Mojave project is claimed to have returned high-grade total rare earth oxides (TREO) rock-chip results with up to 9.49%.
Of the 24 rock-chip samples from the El Campo prospect, five are also claimed to have returned high-grade TREO results between 3.74% and 9.49% with a 6m-wide mineralised zone.
It is located next to Mountain Pass Mine owned by MP Materials, which is considered as one of its kind mine in the western hemisphere, supplying nearly 15% of global rare earth minerals.
Locksley managing director Steve Woodham said: “The successful acquisition of the Mojave Project in the Rare Earth Elements sector is a step forward for the company, particularly when considering the surging global demand for renewables. The board looks forward to providing further updates in the coming weeks when assay results have been received.”
The company issued ten million shares as consideration for the deal. The consideration also includes five million unlisted options to acquire shares, exercisable at A$0.1 ($0.064), on or before 30 March 2026.
Furthermore, Locksley issued 30 million performance rights that will convert into shares on a one-for-one basis subject to the completion of milestones related to the project.
The issued shares are subject to voluntary escrow for a six-month period, starting June 2023, when the announcement was first made.