Neotech Metals has acquired the Hecla-Kilmer rare earth elements (REE) and niobium project in north-western Ontario, Canada, from VR Resources.

The agreement was signed in March 2024.

It involved a cash payment of $1m (C$1.38m) and the issuance of four million common shares to VR Resources.

The Hecla-Kilmer project is characterised by its carbonatite and syenite intrusive system, which hosts REEs, niobium, tantalum and phosphates.

According to Neotech, the project contains an abundance of permanent-magnet rare earth oxides including neodymium, praseodymium, dysprosium and terbium. These are primarily found in volcanic-derived apatites and pyrochlore.

Located around 25km from key infrastructure, the Hecla-Kilmer deposit benefits from its proximity to the 180MW Otter Rapids Hydroelectric-Power generation facility, highways and an active railway.

Drilling efforts at Hecla-Kilmer have yielded positive results, with broad zones of mineralisation discovered in 18 out of 24 holes drilled to date.

Additionally, magnetic and gravity surveys have revealed structures with correlating intercepted mineralisation over a 3km x 2km area, prompting plans for further drilling to explore the extent of the mineralisation.

In 2024, Neotech intends to conduct a diamond drilling programme at the Hecla-Kilmer project.

The company also aims to collaborate with SGS laboratories on metallurgical studies this summer to enhance its understanding of the project’s mineralogical and beneficiation properties.

Neotech Metals CEO and director Reagan Glazier said: “The acquisition of Hecla-Kilmer is highly strategic to Neotech, as it solidifies the company’s position in the REE and critical metals sector, adding both a significant, high-quality REE project with demonstrated potential, and a large, prospective land package with significant upside potential.

“Neotech is advancing a multitrack agenda of aggressive exploration and strategic REE district consolidation, with this transaction representing our commitment to our shareholders in becoming the leading diversified, REE exploration and development company.”