Why has Ionic Rare Earths Achieved a Significant Milestone in Securing Land Access Agreements?

Ionic Rare Earths Limited (ASX: IXR) has made remarkable progress in securing land access agreements for the Mining Licence Application (MLA) for the Stage One development of the Makuutu Rare Earths Project in Uganda. With over 92% of the area covered by the MLA now secured, the company is on track to complete the agreements within the next ten days. This achievement marks a significant milestone in the development of the Makuutu Project, positioning it as a leading source for magnet and heavy rare earths in emerging supply chains across Europe, the US, and Asia.

Land Access Agreements and Government Approval

IonicRE's local operating entity in Uganda, Rwenzori Rare Metals Limited (RRM), received approval from the Ugandan government for its proposed land access process on September 15, 2023. Since then, land access agreements have been successfully secured for 92% of the MLA area. Bugweri District is 94% completed, Bugiri District is 84% completed, and Mayuge District is 90% completed. The company anticipates finalizing agreements for nearly the entire 44 km^2 MLA area in the coming days.

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Verification Process and Mining Licence Issuance

To move forward with the process, the Directorate of Geological Survey and Mines (DGSM) in Uganda will commence verification activities on-site this week. The verification process aims to confirm land access and compliance with regulatory requirements. Once the DGSM verifies the land access, the formal issuance of the Mining Licence can take place. IonicRE expects the Stage 1 mining licence over TN03834 to be awarded soon after completing the land access verification.

Makuutu Rare Earths Project and Government Support

The Makuutu Rare Earths Project, located on Retention Licence (RL) 1693, is set to become Uganda's flagship mine. The project enjoys full support from the Ugandan government, recognizing its significance in the rare earths sector. The Makuutu deposit is known for its high content of magnet and heavy rare earths, making it one of the most advanced heavy rare earth projects globally. This positions it as an essential source for the growing demand for rare earth elements in Europe, the US, and Asia.

Future Developments and Award of Stage 1 Mining Licence

Following the completion of land access agreements and the verification process, Ionic Rare Earths Limited awaits the award of the Stage 1 mining licence over TN03834. The company is not aware of any additional requirements prior to the award, indicating that progress is on track for the development of the Makuutu Project.

This significant milestone achieved in securing land access agreements marks a major step forward for Ionic Rare Earths and paves the way for future advancements in the Makuutu Rare Earths Project. With its rich rare earth deposits and government support, the project is poised to contribute to global supply chains and meet the increasing demand for magnet and heavy rare earths in key markets worldwide.

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