DeSoto Resources Shares Soar on High-Grade Rare Earth Acquisition in Northern Territory

DeSoto Resources Ltd (ASX: DES) has received a positive re-rating in the market this morning, with shares up over 80% to $0.14.

The buying support has followed the acquisition of a rare earths project in the Pine Creek region of the Northern Territory.

A binding term sheet has been signed for the Spectrum Project, a privately held block (EL31475) with historic high-grade rare earth element (REE) intercepts.

The highlight is; 50 metres at 1.55% total rare earth oxide, including 12 metres at 4.51% total rare earth oxide (14.9% neodymium and praseodymium).

DeSoto has an exclusive right to earn an undivided 70% earned interest in Spectrum by completing exploration expenditure of not less than $5,000,000 commencing on the earn-in start date and in two stages.

Critical minerals position

Chris Swallow, managing director, commented:

“This highly complementary acquisition gives us a strategic, critical minerals position in the Northern Territory.

“With the confirmed mineralisation and supporting geophysical anomalies in the surrounding Fenton Project, we are now positioned for an accelerated phase of exploration and drilling.”

Providing further support is the recent government investment to expedite rare earths mining in the Northern Territory – which perfectly aligns with this new acquisition.

Swallow added: “We have been actively investigating critical minerals opportunities since listing through lithium exploration in the Northern Territory and ongoing assessment of offshore manganese projects.

“The strategic synergy we are gaining with this acquisition strengthens our position in the critical minerals landscape.”

The project also contains a large 2 kilometre by 0.5 kilometre untested strong semi-coincident copper-lead-zinc geochemical and geophysical anomaly.

Next Steps

  • Due diligence and compilation of project data
  • Ground gravity and ground Fixed Loop Electro Magnetic surveys over the Quantum and Vesper targets to assist in drill planning
  • Commitment of 3,500 metre of reverse circulation / diamond drilling planned in first 15 months across the REE and base metal targets
  • Develop working geological and mineralisation models for antiformal hinge zone style REE-gold-silver mineralisation and base-metal +/- uranium skarn style deposits
  • Re-evaluate DeSoto and Homestake drilling results to determine if any analogous REE mineralisation is present

Consideration and escrow

  • 3,636,000 fully paid ordinary shares in the company at $0.066 per share;
  • 1,600,000 unlisted options exercisable at $0.23 and an expiry date of five years from the date of issue; and
  • $80,000 cash payment to be made within 6 months from the execution date.

 

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