Altona Rare Earths PLC (LSE:REE) has made a significant move with the announcement of a binding option agreement on the Sesana copper-silver project in Botswana. The project, situated within the Kalahari Copper Belt, represents a strategic diversification for the company amidst fluctuating rare earths markets.
The Sesana project spans approximately 274 square kilometers and is located in close proximity to the recently opened Khoemacau copper-silver mine. This promising location is near other significant discoveries in a relatively underexplored belt, positioning the project as a valuable asset for Altona’s portfolio.
Cédric Simonet, the chief executive of Altona Rare Earths PLC, notes that recent advancements in geophysical and geochemical investigation methods have allowed for effective exploration in the region. Airborne geophysical surveys conducted around the Sesana project have identified promising geological formations indicative of potential mineral deposits.
Simonet emphasizes that this move is part of Altona’s broader efforts to manage market risks associated with rare earths. The company’s diversification strategy includes a focus on copper due to its market stability and the maturity of the copper industry, offering better valuation and investor understanding compared to rare earths.
The option agreement for the Sesana project is structured in three phases, starting with a one-year exploration phase leading to potential drilling activities aimed at resource definition. This strategic move is aimed at stabilizing Altona’s portfolio amidst fluctuating rare earths markets.
This announcement reflects Altona’s commitment to incorporating copper into its portfolio while continuing its dedication to the Monte Muambe rare earths project in Mozambique. By expanding its portfolio to include copper, the company is taking proactive steps to manage market risks and ensure a more stable and diversified investment portfolio.
In conclusion, Altona Rare Earths PLC’s strategic diversification with the Botswana copper licence option agreement represents a significant move in the company’s efforts to stabilize its portfolio amidst fluctuating rare earths markets. The incorporation of copper into its portfolio reflects the company’s commitment to managing market risks and ensuring a more stable and diversified investment portfolio.
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