Kimberley Rare Earths in flat ASX debut
Kimberley Rare Earths (ASX: KRE) failed to catch investor attention when the IPO hit the ASX boards yesterday.
Investors in the IPO paid $0.20, with the stock traded in a tight range from $0.175 to $0.215, before closing near the day's lows at $0.185.
Kimberley Rare Earths is a Navigator Resources (ASX: NAV) part spin-off of the Cummins Range rare earths project, effectively de-risking Navigator.
Kimberley Rare Earths is subject to certain conditions, which include acquiring an immediate 25% ownership of Cummins Range from its parent, Navigator.
The newly minted company can then earn an additional 30% interest with expenditure of $10 million in exploration over a four year period, obtaining a 55% interest.
The company will then have the right to earn up to an 80% interest in the project through the completion of a Feasibility Study in bankable form.
Cummins Range contains a near-surface resource, which Kimberley Rare Earths said has the potential advantage of a low waste:ore ratio.
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