Ionic Rare Earths (IXR) - US Funders Want to Secure Heavy Rare Earths

Ionic Rare Earths Ltd. is an Australian mineral exploration and development company focused on advancing its flagship Makuutu Rare Earths project towards production. The project consists of six licences covering approximately 298 km² and is located 120 km east of the capital city of Kampala in eastern Uganda. The project’s mineralisation is primarily clay-type Rare Earth Element (REE) mineralization with it enjoying the support of not only the local community but also the Ugandan government. The company is also a member of the UN Global Compact, the world’s largest corporate sustainability initiative.

Ionic Rare Earths Ltd. is underway with the submission of the feasibility study for the Makuutu Rare Earths project to the Ugandan government for review. The company believes that by the end of February 2023, the submission will be concluded.

Ionic Rare Earths Ltd. on the 2^nd of February 2023 released an update regarding its downstream strategy for entering the US REE sector. The company has been engaging with various US State representatives to best locate and establish a rare earth separation and refining plant, with the aim being to locate the plant in the proximity of the suppliers of reagents, and potential end users. The company is also in search of a strategic partner which will be able to assist in the funding of the plant.

The company believes that its UK subsidiary, Ionic Technologies International Ltd., a magnet recycling company located in Belfast, UK, shows the potential to be expanded to both the USA and the greater European markets. Ionic Rare Earths Ltd. aims to advance the battery recycling facilities through strategic partners, which will enable the company to enter the markets earlier.

Management

Ionic Rare Earths Ltd. is led by Tim Harrison who serves as the managing director of the company. Harrison initially joined the company as the project manager of the Makuutu Rare Earths project at the start of 2020. Harrison was appointed as CEO in June 2020, from where he became the managing director of the company in December of the same year. Harrison has more than 20 years of experience in mineral processing as well as hydrometallurgy. He has experience in project management, project development, engineering, construction, commissioning and operations management.

Trevor Benson is the Chairman of the company and has more than 30 years of experience in investment banking and stockbroking specialising in the resource sector. He has been involved in the management of various ASX-listed companies and most recently held the position of Executive Chairman and CEO for Walkabout Resources Ltd.

Max McGarvie is the Non-Executive Director for Ionic Rare Earths Ltd. and is a senior mining executive with a career spanning more than 45 years. He has been involved in the development of various mines and has held various operational and managerial roles throughout Australia, Africa and the Middle East.

Jill Kelley serves as the Executive Director of the company and is well-versed in international leadership positions. She is a former honorary ambassador to U.S. Central Command General Mattis and CIA Director David Petraeus. She has also received various awards acknowledging her leadership skills including the Pentagon’s Joint Chiefs of Staff Award and the Multi-National Military Forces Award, an honour only bestowed upon a few individuals.

Brett Dickson rounds out the leadership team of Ionic Rare Earths Ltd. as Company Secretary. Dickson has more than 20 years of experience within the management of publicly listed companies from exploration through development to production.

The leadership team is tasked with managing and advancing the company’s Makuutu project and subsidiary company, Ionic Technologies International Ltd.

The Makuutu project

The Makuutu project of the company consists of six licences covering approximately 298 km² and is located 120 km east of the capital city of Kampala in eastern Uganda. Ionic Rare Earths Ltd. is currently earning into Rwenzori Rare Metals Ltd. which holds 100% of the Makuutu project. The project’s mineralisation is primarily clay-type Rare Earth Element (REE) mineralization with the project enjoying access to various infrastructures including tarred roads, nearby rail systems as well as power and water. The project’s mineralisation is similar to the clay-type deposits of southern China, which is the most economic and accessible source of heavy Rare Earth Oxides (HREO) globally. The project has a mineral resource estimate of 532 million tons of mineralisation at a grade of 640 ppm TREO. Tim Harrison explains the significance of the Makuutu project as one of the few heavy rare earth projects in the world.

“There's no shortage of light rare earth projects out there. What there is not an abundance of is heavy rare earth projects. It's a very short list. I think recently, we saw one of our peer projects in Brazil receive a USD$ 150 million investment from Vision Blue and EMG. I think it's an indication of how important ionic adsorption clay deposits are.”

Planned PFS and Government support

Ionic Rare Earths Ltd. is underway with the submission of the feasibility study for the Makuutu Rare Earths project to the Ugandan government for review. The company believes that by the end of February 2023, the submission will be concluded. Harrison explains that the submission portal has been the delaying factor in submitting the PFS to the government.

“We've been waiting for the Ugandan Government to finalise their submission portal on recent changes to the mining act. We expect that by the end of this week, we'll be ready to upload those documents. We still got to complete an ore reserve estimate and get that out to the market. And then we'll be in a position to release our study to the market and talk about the project economics at that point in time.”

Harrison explains that the company has been working closely with the Ugandan government concerning the advancement of the Makuutu project. The company has also submitted supplementary material to the government to assist it in understanding the entirety of the envisioned operation.

“We’ve already been working with the Ugandan government since the start of September on the mining lease application. We've provided them with initial documentation, so that they can start getting their head around, the way in which we envisage developing Makuutu, getting into production, and potentially scaling up substantially in time.”

The company is underway working through a mineral development agreement with the Ugandan government, which Harrison explains has the potential to be beneficial to both parties.

“There's an option for the government to have a free carry or an interest up to 15%. Well, everything's negotiable and that's what the Ugandan Government has spoken to us about. They want to build a mining industry; they want to attract international investment. They want to raise the profile of Uganda being open for exploration and mining. I think there's a mechanism here where we can be partners in promoting Uganda through a fair mineral development agreement that makes sure that there's enough benefit for both groups moving forward.”

US and UK REE sector

Ionic Rare Earths Ltd. on the 2^nd of February 2023 released an update regarding its downstream strategy for entering the US REE sector. The company has been engaging with various US State representatives to best locate and establish a rare earth separation and refining plant, with the aim being to locate the plant in the proximity of the suppliers of reagents, and potential end users. The company is in search of a strategic partner which will be able to assist in the funding of the plant. Harrison explains that the company is in discussion with various parties in the UK as well as the USA to enable the establishment of a rare earth separation and refining plant.

“We're in discussions with the US and European groups on how we can help get our product into the market, but in order to get the product into the market, there has to be somebody who can process it and that's where these discussions are now at, is how do we separate and refine the Makuutu basket because it's got a basket of elements there. There's no refinery capacity existing today to be able to separate it in Europe or the US, so we have to work with a partner on helping them build that capacity. I think there's a big opportunity there for us.”

The company believes that its UK subsidiary, Ionic Technologies International Ltd., a magnet recycling company located in Belfast, UK, shows the potential to be expanded to both the USA and the greater European markets. Ionic Rare Earths Ltd. aims to advance the battery recycling facilities through strategic partners, which will enable the company to enter the markets earlier. Harrison explains that the potential of recycling magnets is often overlooked, yet plays a crucial part in the supply chain.

“I think the recycling of magnets is overlooked. I think when you look at the production of magnets and there are going to be more magnets made. When a magnet is made, not all of the material, the inputs actually end up as a magnet, and a lot of it ends up as waste. That material gets recycled. At the moment, 40% of the world's current magnet rare earth supply chain is recycling. I think there's a big opportunity there.”

Harrison believes that the greatest opportunity for the company lies within supplying the US and UK EV markets. He believes that by entering the supply chain the company will be able to further refine its processing technologies as well as reduce the accompanying costs.

“There's an opportunity for us to look at scaled-up facilities across maybe the US and Europe, where we can start to make the oxides and work in partnership with metal makers and alloy makers to make the magnets to go into the motors to help show EV companies how we can build a supply chain together.”

2023 Catalysts

One of the catalysts Ionic Rare Earths Ltd. expects in 2023 will be the granting of the mining licence of the Makuutu project. Harrison explains that the company is also underway with discussions with Rwenzori Rare Metals Ltd. to further its earn-in and increase its current ownership of the Makuutu project.

“I think some of our strategic partners downstream in the US would like for us to mop up 100% of the asset. I think that that's going to be an important thing now. We're in discussions with our partners now, I think there's a common vision, there's alignment on where we want to go, so hopefully, we're able to do something soon.”

The company will also advance its UK subsidiary, Ionic Technologies International Ltd. to be able to produce rare earth oxides, through the construction of a demo plant.

“I think the other thing is that through the course of this year, we'll be producing oxides in Belfast. With those oxides, we can start to work with metal makers, alloy makers, and magnet makers on demonstrating the X-China supply. It’s not just NdPr, we're talking about DyTb. DyTb is the two elements that really are going to be extremely hard to find by the end of this decade for the x-China supply chain, Dysprosium and Terbium.”

The importance of Dysprosium and Terbium is paramount in EV motors, as the alloys formed from these metals prevent demagnetising in EV motors.

“They're magnet rare earths used in the production of magnets that operate at high temperatures. If there's no DyTb, the magnet will start to demagnetise at a much lower temperature, which means the motors, and the wind turbines can’t operate at the temperatures required to drive efficiency. You just drive along and that's it, it stops.”

The various avenues being pursued by the company will ensure that 2023 will be an eventful year for this aspiring HREO manufacturer and battery recycler. 

To find out more, go to the Ionic Rare Earths website