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New Rare Earths Float

An insatiable demand for high technology goods such as mobile phones, flat screen plasma TVs and hybrid cars and an overreliance on China as a supplier has led to a new rare earths float.

Strategic Elements Limited (Proposed ASX: SOR) plans to raise up to four million dollars depending on investor demand to become Australia’s only rare earths focus pooled development fund.

“We believe rare earths is a big growth story because of huge demand, and registration as a pooled development fund means that investors can get exposure to the potential upside of the sector without having to pay tax on capital gains or dividends,” said Managing Director Charles Murphy.

China produces 97 per cent of the world’s supply of rare earths and exports fell nearly ten per cent last year under tighter restrictions raising fears amongst Western governments of a coming global shortage.

“These market conditions of a tighter supply and growing demand create a unique investment opportunity to develop a rare earths industry outside of China and our investee company Strategic Materials Pty Ltd will be the first to seriously explore for these metals in mineral rich New Zealand where we have secured some highly prospective permits,” said Mr Murphy.

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