PERTH (miningweekly.com) – Following shareholder approval, junior Sagon Resources has moved to take full ownership of the Cummins Range rare earths project, in Western Australia.
The company in July this year struck an agreement with fellow listed Element 25 to acquire the Cummins Range project for A$500 000 in cash and the issue of A$500 000 worth of shares.
Sagon on Friday told shareholders that the company had completed a A$1.17-million capital raise, through the issue of 68.8-million new shares, to complete the acquisition of the Cummins Range project, and to fund a maiden exploration programme.
Cummins Range is 130-km southwest of Halls Creek and is one of two known rare earth bearing carbonatites in Australia, with the other being the Mt Weld project owned by ASX-listed Lynas.
Sagon is planning a comprehensive review of the historical resource in addition to the Stage 1 drill programme, which will start in the coming months, subject to permitting.