Medallion Resources Ltd has announced a tie-up with private company ACDC Metals Pty Ltd (ACDC) to potentially produce rare earths from monazite from Australia's Murray Basin using the former's extraction process.
ACDC is to acquire three historical non-JORC/NI43-101 compliant mineral sand resource properties and other exploration assets in Victoria, Australia, and is planning to undertake an IPO and list on the Australian Stock Exchange within the next 12 months.
READ: Medallion finishes techno economic assessment for REE extraction from mineral sand monazite
The non-binding letter of intent (LOI) gives ACDC the exclusive right to construct a mineral sand monazite refinery in southeastern Australia utilizing the Medallion monazite process, and the right to sub-license the ligand Assisted Displacement (LAD) Chromatography process to separate out the rare earth elements (REE).
Monazite is widely available as a by-product from the mineral sands mining industry.
"We are very pleased to have signed this LOI with ACDC so soon after completion of the TEA," said Mark Saxon, Medallion's CEO in a statement.
"ACDC is acquiring monazite-rich mineral sand resources in the Murray Basin, one of the world’s premier mineral sand provinces. By bringing together these resources with Medallion’s processing technology we see a great synergy to produce REEs.
"The Medallion Monazite Process and LAD Chromatography provides the opportunity for maximum value add while minimizing environmental footprint of REE extraction and separation."
The firm recently published the positive findings of a techno-economic assessment (TEA), which showed the technical and financial viability of its extraction process. At a scale of 7,000 tonnes a year of monazite, a facility would deliver around 870 tonnes per annum of neodymium (Nd) and praseodymium (Pr) oxide in cerium-depleted mixed carbonate form, it revealed.
Under the deal, Medallion would receive a 'significant' allocation of pre-IPO shares of ACDC, transferable rights to contribute funding to ACDC at seed and IPO stages, milestone payments and a royalty on successful operation of the refinery.
Andrew Shearer, ACDC's managing director, added: "In partnering with Medallion Resources, we believe we have accessed the right technology at the right time, allowing us to be fast to market as REE prices rise and the market expands.
"We are excited to play a role to improve supply security and reduce environmental impact of rare earth element production."
Medallion Resources shares in Canada advanced 10% on the day to C$0.22 each. In New York, they gained 6.10% at US$0.17.
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Contact the author at giles@proactiveinvestors.com