Ionic Rare Earths Limited (IonicRE) has announced that it has moved to increase its ownership of Ugandan subsidiary Rwenzori Rare Metals Limited (RRM), which owns the Makuutu Rare Earths Project, to 60 per cent.
The move follows the company’s positive Makuutu Stage 1 Definitive Feasibility Study (DFS), which showed that Makuutu would have an initial 35-year mine life, earnings before interest, tax, depreciation and amortisation estimates totalling $2.29 billion and an internal rate of return of 32.7 per cent.
It also comes after the company received approval from the Ugandan Ministry of Energy and Mineral Development (MEMD) to progress the construction of a technical facility and demonstration plant at the Makuutu mine site.
IonicRE said it continues to engage with stakeholders across the Ugandan Government on the status of Mining Licence Application (MLA) TN03834 over the central Makuutu tenement RL 1693.
It added that MEMD had made progress in upgrading its mineral licencing system to align it with the provisions of the Mining and Mineral Act 2022.
The company said it would issue market updates as it progresses on the MLA.
The flagship Makuutu Rare Earths Project is supported by existing tier-one infrastructure. It is on track to become a long-life, low-capital expenditure, scalable and sustainable supplier of high-value magnets and heavy rare earth oxides.
The DFS defines Makuutu as a project that produces 71 per cent of rich magnet and heavy rare earth carbonate products that can be scaled further by adding new tenements.
