Ionic Rare Earths Limited (IXRRF) Moves to 94% Ownership of the Makuutu Rare Earth Project

Ionic Rare Earths Limited (ASX:IXR) (OTCMKTS:IXRRF) is pleased to advise it has signed a share purchase agreement ("SPA") with Rare Earth Elements Africa (Pty) Ltd ("REEA") under which IonicRE will acquire a further 34% interest in local Ugandan operating entity Rwenzori Rare Metals Limited ("RRM") ("Transaction") which owns the Makuutu Rare Earths Project ("Makuutu").

IonicRE has an existing 60% interest in the Project prior to the Transaction.

- IonicRE has signed a conditional share purchase agreement to acquire an additional 34% interest in the strategic Makuutu Rare Earths Project, taking its ownership to 94% on completion;

- Makuutu's basket contains 71% magnet and heavy rare earths content, and is one of the most advanced ionic adsorption clay (IAC), heavy rare earth projects globally, available as a source for new supply chains emerging across Europe, the US and Asia;

- This is a watershed moment for the Company with ownership at a 94% interest, opening up a multitude of potential funding and offtake scenarios in financing the development of the Project;

- Third party interest in partnering with the Company remains very strong with discussions already underway; and

- First Mixed Rare Earth Carbonate (MREC) product on track to be produced from the Demonstration Plant in Q1 2024 to send to potential customers and offtake parties for evaluation.

Completion of the Transaction ("Completion") will see IonicRE's interest in Makuutu increase to 94%, which is a considerable milestone for the Company.

The Company expects this to be a substantial step forward in progressing the financing and offtake discussions with multiple third parties who have expressed strong interest in partnering with the Company to access the heavy rare earth product achieved through the development of the Project.

IonicRE's Managing Director, Mr Tim Harrison, noted the significance of the transaction.

"Makuutu isn't just any rare earth project; it's a strategic asset, and importantly one of the most advanced ionic adsorption clay projects globally. Makuutu can unlock near term supply of heavy rare earths into the advanced manufacturing demand that far exceeds existing supply. It has immediate strategic value to these new supply chains forming.

With a dominant 71% magnet and heavy rare earth basket content, Makuutu stands tall as one of the most advanced heavy rare earth projects globally. Positioned strategically, it's poised to fuel the emerging supply chains across Europe, the US, and Asia.

This is an exciting time for Makuutu as we near production of first mixed rare earth carbonate from the Demonstration facility in the first quarter of 2024, and the increased ownership will enable IonicRE to advance and accelerate discussions with strategic investors, offtake partners and financiers."

*To view full details of the share purchase agreement, please visit:
https://abnnewswire.net/lnk/1JUSX47D

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