QIC invests $4.5m in rare earths project developer Ark Mines
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The news: The state-owned Queensland Investment Corporation (QIC) has invested $4.5 million in prospective rare earth elements miner Ark Mines through its critical minerals and battery technology fund (QCMBTF).
The numbers: The QCMBTF will invest $4 million up-front in funding tied to royalties from future product sales from the Sandy Mitchell rare earth and heavy mineral project located 230km north-west of Cairns.
Royalties payable to the QCMBTF will be "calculated and paid quarterly based on 2% gross revenues calculated in Australian dollars from the future sale of products from Sandy Mitchell”.
The remaining $500,000 will be as an equity investment, subject to Ark Mines shareholder approval. It is expected that new Ark Mine shares will be issued at 16.7 cents each.
The ASX-minnow's shares were surged 29.73% 24 cents by 11:42am AEST and over the last 12 months has jumped 33.33%.
The context: The funding will be used to accelerate development of the Sandy Mitchell project. Stage-three infill drilling is underway, with the results to be incorporated into an upcoming pre-feasibility study. Ark Mines is targeting production in late-2027.
What they said: QIC managing director Ben Emery said the investment fund’s “goal now is to establish Ark Mines as a leading Australian rare earths supplier, serving end users in domestic and international markets”.
“We look forward to updating our investors on more key developments in the coming months, led in the near-term by a comprehensive infill drill program which we expect will deliver a significant increase to the current measured resource of [Monazite Equivalent] at Sandy Mitchell.”
The source: ASX
