Magnum Mining & Exploration Ltd (ASX:MGU) Quarterly Activities Report
Acquisition of Rare Earth Projects
Magnum Mining & Exploration Ltd (ASX: MGU) has entered into an agreement to acquire the Palmares and Azimuth Rare Earth Element (REE) Projects in Brazil. This acquisition is significant for expanding Magnum’s footprint in the REE sector.
Due diligence on the Palmares REE tenements has commenced, with a focus on validating technical aspects and addressing any undisclosed financial obligations. The acquisition involves a cash payment of US$100,000 and the issuance of 190 million shares, contingent upon shareholder approval.
Exploration and Technical Due Diligence
The Azimuth REE Project spans approximately 1,201 square kilometres, covering promising geological areas conducive to REE mineralisation. The project remains in an exploratory phase, with no prior geological activities completed.
In contrast, the Palmares REE Project has reported findings from geological mapping and sampling, identifying areas with substantial amounts of Total Rare Earth Oxides (TREO). Notably, surface geochemical analyses have returned up to 13,082ppm TREO, with high values of critical heavy rare earths.
Green Pig Iron Project Progress
Magnum is actively negotiating with investors for its Green Pig Iron Project in Saudi Arabia. This initiative includes plans for constructing a HIsmelt plant using steel mill waste and magnetite sourced from Magnum’s Buena Vista Magnetite mine. Progress in talks with a local steelmaking company is reported to be on target for a successful conclusion.
Next Steps
Looking ahead, Magnum’s board will deliberate on funding arrangements related to the acquisition of the REE projects and potential work programs. The company anticipates completing due diligence and convening a shareholder meeting by the end of January 2025 to seek necessary approvals for the proposed share issuances.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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