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Auxico Resources exports 432 tons of rare earth concentrates from The Democratic Republic of the Congo

Published: 10:27 21 Sep 2022 EDT

Auxico Resources Canada Inc - exports 432 tons of rare earth concentrates from The Democratic Republic of the Congo
'The company anticipates the sale of monazite to ramp-up to 1,000 tons per month by the end of 2022,' said Auxico CEO Frederick Kozak

Auxico Resources Canada Inc (CSE:AUAG, OTC:AUXIF) successfully executed the company's third and fourth trades of a cumulative 432 tons of rare earth concentrates (monazite sands) from the Democratic Republic of the Congo (DRC).

The Montreal, Canada-based company said it sold a total of 720 tons of monazite since April this year, including the latest trades, representing a total provisional value of US$3.8 million. According to the signed sales agency agreement with Central America Nickel (CAN), Auxico will retain a commission equal to 15% of the sales price.

The firm said material from the third and fourth trades were sold for a total provisional value of US$2.1 million. Central America Nickel has already paid US$1.1 million, while the balance will be settled upon delivery of relevant contractual documents and the material arriving at the final destination, added Auxico.

READ: Auxico Resources gets new CEO in rare earths specialist Frederick Kozak

In a statement, Auxico CEO Frederick Kozak said: "We are very pleased to see the latest trades of rare earth concentrates being finalized, which further validates that the rare earth sale operations from the DRC are a sustainable source of revenue for the company.”

“The project has one of the highest TREO grades of any developing rare earth project hosted in monazite sands and ready for direct shipping without prior concentration, which positions Auxico as a leader in the rare earths export market. The company anticipates the sale of monazite to ramp-up to 1,000 tons per month by the end of 2022.”

Kozak, who is a rare earths specialist, emphasized that the company works hard to ensure operations in the DRC are “ethically sourced and with full traceability.”

Amongst the highlights of Auxico’s latest trade operations from the DRC, the firm said that initial testing on samples of the material indicated an average grade of 14.01% Neodymium, and around 60% total rare earth oxide content (TREO). Samples of the material will be analyzed by SGS South Africa, and the results are expected within the next 10 days.

Auxico's objective is to increase the export to 1,000 tons per month in the next quarter. At current market prices of US$6,000 per ton, this would represent a yearly sale value of approximately US$ 72 million, of which Auxico will retain a 15% commission.

Additionally, the rare earth concentrates contained in the non-radioactive monazite sands are purchased from various cooperatives in the province of North Kivu, in the DRC.

Auxico is engaged in the acquisition and development of mineral properties in Colombia, Brazil, Mexico, Bolivia and the DRC. It controls 1,482 hectares in the province of Vichada, Colombia, where Auxico has made discoveries of high-grade concentrates with total rare earth oxide content exceeding 55%. Auxico is in the process of obtaining the environmental and exploitation permits.

In addition, Auxico has a joint venture agreement for the Massangana tin tailings project in the province of Rondonia, Brazil, where the company intends to build a 2,500 ton per day processing facility. A recent economic forecast prepared by the Brazilian firm PrimeStar has projected yearly revenues of US$300 million, according to Auxico.

Contact the author Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive

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