Reach Resources Limited (ASX:RR1) ("the Company" or "Reach Resources") provides its activities report for the quarter ended 31 March 2022.


SUMMARY

Strategic Investment into Cutting-edge Rare Earth Element Recycling Business

  • Strategic investment of $1.8M into REEgenerate Pty Ltd, an Australian private company that owns 100% of the Coconut Club REE exploration project in Quebec, Canada and that has subsequent to the quarter end exercised its option and acquired 100% of REEcycle Inc, a US based Rare Earth Element (REE) separation and technology Company (ASX announcement 13 April 2022)
  • REEcycle has developed a process that has shown at pilot scale the ability to reclaim 15 of the 17 rare earth elements in discarded permanent NdFeB magnets, with a recovery efficiency in excess of 99%
  • The patented process developed at the University of Houston uses a proprietary solvent to safely and efficiently extract REEs from permanent magnets found in wind turbines, electric vehicles (cars, bikes, scooters), MRI machines and other electronic waste with low temperatures, low pressures, and minimal energy needs and waste
  • REEcycle aims to provide an alternative option to traditional mined sources of rare earth metals as well as reduce supply chain uncertainty and geopolitical risk for companies reliant on these materials
  • The global permanent magnet market size was valued at USD$17.85 billion in 2018 and is projected to reach USD$34.70 billion by 2026, exhibiting a CAGR of 8.7% during the forecast period 1 , with the rare earth metals component being valued at US$5.3 billion in 2021 with only 1% of REEs sourced from recycled end of life products 2
  • Shanghai Metals Market (SMM) forecast recycling of NdFeB magnets is likely to be the largest growth of neodymium and dysprosium supply from 2021 to 2025

Placement raises $2.4M

  • As announced on 21 March 2022, Reach Resources raised $2.4M in new equity to fund its investment in REEgenerate and the development of its existing mineral resource exploration projects, including working capital.

Appointment of CEO

  • On 23 March 2022 RR1 announced the appointment of Mr. Jeremy Bower as CEO of the Company.

1) REEgenerate Investment

Reach Resources (“Reach” or “Company”) is pleased to announce that it has made a strategic investment of $1.8M into REEgenerate Pty Ltd (“REEgenerate”), an Australian private company that owns 100% of the Coconut Club REE exploration project in Quebec, Canada. REEgenerate also had an option to acquire 100% of REEcycle Inc (“REEcycle”), a US based Rare Earth Element (REE) separation and technology Company. Subsequent to the quarter end as announced to ASX on 13 April 2022, REEgenerate exercised its option to acquire 100% of REEcycle, giving Reach Resources direct exposure to this company, whose future is aligned with current global social and political thinking of a cleaner, greener future through the circular economy principle.

New CEO Jeremy Bower commented “Our shareholding in REEgenerate represents an exciting addition to our portfolio of exploration assets, particularly our REE projects. We will continue to update the market on this investment in parallel with the development of our resource projects”.

Click here for the full ASX Release

This article includes content from Reach Resources Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

RR1:AU
Reach Resources

Reach Resources Limited


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