Magnum Mining and Exploration Limited (ASX:MGU, OTCQB:MGUFF), a company focused on resource exploration, has announced it has entered into a binding term sheet to acquire Wyoming Critical Minerals, Inc. (WCM). WCM is the sole owner of the Wet Mountains Rare Earth Element (REE) Project, a promising REE project located in central Colorado, U.S.A. This acquisition marks a significant step for Magnum as it expands its U.S. critical minerals portfolio.
The Wet Mountain REE Project boasts exceptional historical assays, with samples showing up to 7.99% Total Rare Earth Elements (TREE) from outcropping carbonatite dykes. Additionally, historical assays have recorded up to 1,900 ppm of heavy REE (HTREE), 5,000 ppm Praseodymium (Pr), 20,000 ppm Neodymium (Nd), and 2,000 ppm Samarium (Sm). The project area consists of 126 claims covering 10.5 km², with potential for further expansion.
According to Magnum, the project has significant untested potential. There has been no drilling or systematic sampling undertaken to date. This presents scope for near-surface discovery potential. The project is strategically located in the U.S., aligning with government supply-chain initiatives. This positions the project well for potential grants or U.S. government support programs.
Magnum intends to launch a rapid campaign of sampling, trenching, and drilling to unlock the Project’s full potential. The acquisition cost is weighted for discovery, with Magnum paying USD$27,500 for exclusivity, USD$80,000 upon completion, issuing 20 million fully paid shares, and granting a 2% Net Smelter Royalty (NSR) over all minerals produced from the Project.
