Reach Resources has entered into a tenement sale agreement to acquire a new exploration licence from Firebird Metals, further expanding its presence in prospective manganese terrain in the Edmund Basin of Western Australia. The company has identified increasing global demand for critical minerals such as lithium, manganese, and rare earths in the ongoing decarbonization and electrification efforts across the globe.
The new deal requires Reach to pay $110,000 through the issuance of ordinary shares. The licence area, known as “Ashburton Manganese,” was granted to Firebird Metals in March 2020 and is valid until March 2027. It is situated in the Edmund Basin, primarily comprising sedimentary rocks of the Edmund and Collier groups, known for hosting manganese mineralization. The acquisition allows Reach Resources to consolidate its tenure in highly prospective areas for lithium, manganese, and rare earths.
Manganese, traditionally used in the steel industry as an alloying agent, is now a key component in the production of lithium-ion batteries for electric vehicles (EVs). Reach Resources remains focused on its Morrissey Hill lithium project but recognizes the importance of consolidating its position in areas with potential in the EV market. The company’s acquisition is strategically located between significant players in the industry, such as Hastings and FMG.
The demand for manganese from the EV sector is growing rapidly, with approximately 90kg of manganese used per electric vehicle. It plays a critical role in nickel-manganese-cobalt batteries and is an important element within battery cathodes. The evolving battery technology, such as manganese being introduced into lithium-iron-phosphate batteries, further drives the demand for high-purity manganese sulphate. The White House has also recognized the potential of manganese in next-generation battery cells due to its stability and safety.
Reach Resources’ shares have shown a steady rise since May, reaching a peak of 1.9 cents as of today. This acquisition aligns with the company’s strategy to capitalize on the growing demand for critical minerals in the global shift towards clean energy and sustainability.
Sources:
– Reach Resources (ASX:RCH)
– WA Mines and Petroleum Department