ASX-listed Ionic Rare Earths (IonicRE) has entered into a share purchase agreement with Rare Earth Elements Africa to acquire an additional 34% interest in Rwenzori Rare Metals, the Ugandan operating entity that holds the Makuutu rare earths project. With an existing 60% interest in the project, this transaction will raise IonicRE’s shareholding to 94%, a significant milestone for the company.
This development represents a substantial step towards advancing the financing and discussions on offtake agreements with multiple third parties that have expressed a strong interest in partnering with IonicRE to access the heavy rare earth product produced through the project’s development.
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According to IonicRE Managing Director Tim Harrison, Makuutu is not just an ordinary rare earth project; it is a strategic asset and one of the most advanced ionic adsorption clay projects globally. With a dominant 71% magnet and heavy rare earth basket content, Makuutu is well-positioned to meet the growing demand for heavy rare earths in advanced manufacturing across Europe, the US, and Asia.
Harrison further emphasizes that this increased ownership will allow IonicRE to advance and expedite discussions with strategic investors, offtake partners, and financiers. As the project nears production of the first mixed rare earth carbonate from the demonstration facility in the first quarter of 2024, the company is excited about the opportunities that lie ahead.
