OD6 Metals Secures Funds to Propel Splinter Rock Rare Earths Project Forward

OD6 Metals Limited (ASX: OD6) has successfully secured firm commitments, totaling A$1.5 million, in a robust placement round aimed at institutional, professional, and sophisticated investors.

This achievement underscores the strong support garnered for the company’s endeavours.

The raised funds will be pivotal in advancing the flagship Splinter Rock Rare Earth Elements Project through various key initiatives, including growth and infill drilling, metallurgical optimization, and the completion of a comprehensive Scoping Study.

In tandem with the placement, OD6 intends to launch a share purchase plan to raise $1 million offering eligible shareholders the opportunity to participate under the same terms as the placement.

The combined proceeds from both the placement and the SPP will empower the company to continue driving forward the Splinter Rock Project toward its developmental milestones.

The primary focus of these funds will be directed towards targeted infill drilling activities, particularly at the Inside Centre Prospect, along with extensional drilling efforts aimed at expanding the Mineral Resource Estimate.

Additionally, resources will be allocated towards reconnaissance regional drilling.

A significant portion of the funds will also be earmarked for the ANSTO metallurgical program, aimed at optimising leach recovery and impurity removal processes. The ultimate objective is to produce a Mixed Rare Earth Carbonate, a crucial milestone facilitating the completion of the Scoping Study.

Key Achievements and Milestones

  • Commencement of drilling activities at Splinter Rock, featuring an initial 179-hole AC program spanning 5,862 metres.
  • Early drilling successes are evidenced by impressive grades, with initial results yielding grades of up to 6,729ppm TREO, averaging 22.3% MagREO.
  • Completion of Phase 2 drilling, comprising a total of 83 holes drilled for 4,305 metres, showcasing very high metallurgical recoveries of up to 96% of MagREO acid leach recoveries, with an average ranging between 60% to 75%.
  • Attainment of a Splinter Rock Maiden Inferred Mineral Resource Estimate, totaling 344Mt at 1,308 ppm TREO (at a 1,000ppm cut-off grade) equating to 450 kt contained TREO.
  • Noteworthy REE grades were discovered at Centre Prospect, with values reaching up to 6,441 ppm TREO, with 77 holes returning values exceeding 1,000ppm TREO.

Key Attributes of the Splinter Rock Project

  • Targeting critical, high-value magnet rare earth elements poised for significant consumption growth, expected to triple by 2035.
  • Strategic location in a Tier 1 jurisdiction with access to substantial infrastructure and a clear tenure pathway.
  • Strong metallurgical results indicate a simple leach process with high recoveries of valuable MagREE, comparable or superior to industry peers.
  • Targeting increase and upgrade to MRE in Q2 2024.

A disciplined strategic approach aimed at maximising value, with a clear focus on delivering optimal outcomes for the Scoping Study.

Commenting on the successful capital raising, OD6’s Managing Director, Brett Hazelden, expressed enthusiasm regarding the potential of the Splinter Rock Project.

He highlighted the strong support received from new investors, alongside long-term retail and institutional shareholders.

The forthcoming metallurgical work at ANSTO aims to further enhance leach recoveries and facilitate discussions with potential strategic partners and off-takers. Hazelden concluded by affirming the company’s dedication to derisking the Splinter Rock Project, aiming to solidify its status as Australia’s premier clay-hosted rare earth project.

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