Reach Resources Limited (ASX: RR1) ("the Company" or "Reach Resources") is pleased to provide an update in relation to its recent strategic investment into REEgenerate Pty Ltd (“REEgenerate”) as previously announced to ASX on 21 March 2022.


REEgenerate is 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 focussed on recovering REE from high powered permanent NdFeB magnets.

The Company is pleased to inform shareholders that REEgenerate has now exercised its option to acquire 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”.

Highlights

  • 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

In pilot testing, REEcycle has been able to achieve up to 99.8% separation/recovery efficiency of pure rare earth elements from the other materials in the magnet (Iron and Boron). The process is carried out at atmospheric pressure, under mild temperatures, producing water (pH 6) which contains Iron and Boron at concentrations compliant with those specified by municipal sewage treatment systems. Rare Earth Oxide (REO) concentrate exists in carbonate form but can easily be converted to an oxide.


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


Keep reading... Show less

Top News

Related News

×