Locksley Resources raising $1.47m for REE and antimony exploration at Mojave

Locksley Resources’ heavily oversubscribed $1.47m placement to fund exploration at Mojave REE and antimony project in California.

Pic: Getty Images

• Locksley Resources has received firm commitments for a $1.47m placement to fund exploration at its Mojave project

• Proceeds from heavily subscribed placement will fund exploration including the upcoming drill program

• Drilling will test the El Campo prospect for rare earths and Desert Antimony Mine for high-grade antimony

Special Report: Investors have demonstrated their confidence in Locksley Resources and exploration at its Mojave antimony and rare earths project by heavily oversubscribing for a $1.47m placement of shares.

The funds were raised through the issue of 36.67 million shares at 4c each to sophisticated and institutional investors under the company’s ASX Listing Rule 7.1 and 7.1A placement capacity.

Proceeds will be used by Locksley Resources (ASX:LKY) to fund the upcoming exploration campaign including drilling at the Mojave project in California.

Its exploration team is mobilising to site in order to confirm priority targets and prepare for drilling to start.

“We’re extremely pleased with the strong support shown for this raise, which allows us to advance both antimony and REE drilling in one of the most strategic locations in the US,” chairman Nathan Lude said.

“This funding puts us in a strong position to execute our exploration program and deliver key value catalysts in the months ahead.”

Mojave drilling

Mojave is immediately adjacent to MP Materials’ high-grade Mountain Pass mine and processing facility, which is the only active REE processor in the US and produces ~15% of global REE supply.

The project is prospective for both valuable magnet rare earth elements (REEs), such as neodymium and praseodymium, as well as for antimony.

At the El Campo prospect, twelve surface samples returned high-grade REE results ranging from 1.03% to 12.1% total rare earth oxides (TREO) across a six-metre-wide mineralised zone.

Surface sampling from the Desert Antimony target returned exceptional grades of up to 46% Sb, with multiple samples exceeding 17% Sb.

REEs and antimony are designated as critical minerals by the US government with the former – particularly magnet REEs – used to manufacture permanent rare earth magnets used in electric vehicle motors and wind turbines.

Antimony, which reportedly cracked the US$60,000t mark recently, is used as a flame retardant and in the production of alloys used in batteries, low-friction metals, small arms, tracer bullets, cable sheathing and other industrial products.

Despite its strategic significance, the United States currently has no active domestic antimony production, with historical supply dominated by Chinese sources.

LKY is mobilising its team to confirm and peg drill collar locations and access routes while it waits for Bureau of Land Management approvals to be granted.

Drilling will target two key prospects:  El Campo, where six holes are planned to test high-grade REE mineralisation of up to 12.1% TREO; and the Desert Antimony Mine, where three holes are designed to test high-grade surface antimony mineralisation of up to 46%.

This article was developed in collaboration with Locksley Resources, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.