Broken Hill Prospecting has completed the transfer of its interest in the Thackaringa cobalt project in New South Wales to its joint venture (JV) partner Cobalt Blue.
Broken Hill will receive $6 million in cash, shares and deferred consolidation, while Cobalt Blue acquires a 30 per cent holding in Broken Hill.
The company is now turning its attention to developing and commercialising the La Paz rare earths project in Arizona, United States of America.
Broken Hill is changing its name to American Rare Earths to avoid confusion with Cobalt Blue’s Broken Hill interests and align with this new focus.
“We are excited about the prospects for our La Paz rare earths project,” chairman Creagh O’Connor said.
“Following the strong, strategic support of the US government of US-based rare earth projects, La Paz is in an excellent position to take forward.”
Despite this new international focus, Broken Hill will retain its 2 per cent royalty on all cobalt production from the Thackaringa project and its interest in the Broken Hill style mineralisation, excluding cobalt mineralisations, on part of the tenements.
Broken Hill has transferred these tenements to Cobalt Blue, enabling the latter to progress and commercialise the project.
O’Connor said the company was delighted to complete the transfer while retaining its interest as a shareholder and royalty holder.
“We believe that unifying the project under Cobalt Blue management is the best step for both companies,” he said.