MINING LEASE APPLICATION SUBMITTED FOR NORRA KÄRR
Leading Edge Materials has submitted a 25-year mining lease application for the Norra Kärr Heavy Rare Earths Project to Sweden's Mining Inspectorate. The project, redesigned in 2021, separates mining from chemical processing activities, with processing relocated to an industrial park. The new design reduces operational area by 65%, water usage by 30%, and increases material conversion to products from 1% to 60%.
The 2021 Preliminary Economic Assessment highlights include: $1,026M pre-tax NPV, 30.8% IRR, $487M initial CAPEX, and 26-year mine life. Annual production targets include 5,341 tonnes of TREO and 732,885 tonnes of Nepheline Syenite co-product. The company plans further testwork in Q1 2025 to explore market potential for nepheline syenite and aegirine.
Leading Edge Materials ha presentato una richiesta per una concessione mineraria di 25 anni per il Progetto Norra Kärr per Terre Rare Pesanti all'Ispettorato Minerario della Svezia. Il progetto, riprogettato nel 2021, separa le attività minerarie da quelle di lavorazione chimica, con il processo di trasformazione spostato in un parco industriale. Il nuovo design riduce l'area operativa del 65%, il consumo d'acqua del 30% e aumenta la conversione dei materiali in prodotti dal 1% al 60%.
I punti salienti della Valutazione Economica Preliminare del 2021 includono: NPV pre-imposte di $1.026 milioni, IRR del 30,8%, CAPEX iniziale di $487 milioni e una vita mineraria di 26 anni. Gli obiettivi di produzione annuali prevedono 5.341 tonnellate di TREO e 732.885 tonnellate di sidero-sienite come co-prodotto. L'azienda prevede ulteriori test nel primo trimestre del 2025 per esplorare il potenziale di mercato per la sidero-sienite e l'aegirina.
Leading Edge Materials ha presentado una solicitud de concesión minera de 25 años para el Proyecto Norra Kärr de Tierras Raras Pesadas a la Inspección de Minería de Suecia. El proyecto, rediseñado en 2021, separa las actividades mineras de las de procesamiento químico, trasladando el procesamiento a un parque industrial. El nuevo diseño reduce el área operacional en un 65%, el consumo de agua en un 30% y aumenta la conversión de materiales a productos del 1% al 60%.
Los aspectos destacados de la Evaluación Económica Preliminar de 2021 incluyen: NPV antes de impuestos de $1,026 millones, TIR del 30.8%, CAPEX inicial de $487 millones y una vida útil de la mina de 26 años. Las metas de producción anuales incluyen 5,341 toneladas de TREO y 732,885 toneladas de sienita nephelina como coproducción. La empresa planea realizar más pruebas en el primer trimestre de 2025 para explorar el potencial del mercado para la sienita nephelina y la aegirina.
Leading Edge Materials는 스웨덴 광업 감독청에 노라 케르 희귀 광물 프로젝트에 대한 25년 광산 임대 신청서를 제출했습니다. 2021년에 재설계된 이 프로젝트는 채굴 활동과 화학 처리 활동을 분리하며, 처리 과정은 산업 단지로 이전되었습니다. 새로운 설계는 운영 면적을 65% 줄이고, 물 사용량을 30% 줄이며, 자재의 제품 전환율을 1%에서 60%로 증가시킵니다.
2021년 예비 경제 평가의 주요 내용은 다음과 같습니다: 세전 NPV $1,026M, IRR 30.8%, 초기 CAPEX $487M 및 26년 광산 수명. 연간 생산 목표에는 5,341톤의 TREO와 732,885톤의 네펠라인 시안산염 공제품이 포함됩니다. 이 회사는 2025년 1분기에는 네펠라인 시안산염과 에기린의 시장 잠재력을 조사하기 위한 추가 시험 작업을 계획하고 있습니다.
Leading Edge Materials a soumis une demande de permis minier de 25 ans pour le Projet Norra Kärr sur les Terres Rares Lourd à l'Inspection Minérale de Suède. Le projet, repensé en 2021, sépare les activités minières de celles de traitement chimique, le traitement étant transféré dans un parc industriel. Le nouveau design réduit la zone d'exploitation de 65 %, la consommation d'eau de 30 % et augmente la conversion des matériaux en produits de 1 % à 60 %.
Les points forts de l'Évaluation Économique Préliminaire de 2021 comprennent : un VAN avant impôt de 1 026 millions de dollars, un TRI de 30,8 %, un CAPEX initial de 487 millions de dollars et une durée de vie de la mine de 26 ans. Les objectifs de production annuels incluent 5 341 tonnes de TREO et 732 885 tonnes de néphéline syénite comme coproduit. L'entreprise prévoit des travaux d'essai supplémentaires au premier trimestre de 2025 pour explorer le potentiel du marché pour la néphéline syénite et l'aigérite.
Leading Edge Materials hat einen Antrag auf eine 25-jährige Bergbaulizenz für das Norra Kärr Projekt für schwere Seltenerdstoffe bei der schwedischen Bergbehörde eingereicht. Das 2021 neu gestaltete Projekt trennt Bergbau von chemischen Verarbeitungsaktivitäten, wobei die Verarbeitung in einen Industriepark verlegt wird. Das neue Design reduziert die Betriebsfläche um 65%, den Wasserverbrauch um 30% und erhöht die Umwandlung von Materialien in Produkte von 1% auf 60%.
Zu den Highlights der 2021 vorläufigen Wirtschaftlichkeitsbewertung gehören: $1,026M vor Steuern NPV, 30,8% IRR, $487M anfängliche CAPEX und eine Lebensdauer der Mine von 26 Jahren. Die jährlichen Produktionsziele umfassen 5,341 Tonnen TREO und 732,885 Tonnen Nephelinsyenit als Mitprodukt. Das Unternehmen plant weitere Tests im ersten Quartal 2025, um das Marktpotential für Nephelinsyenit und Aegirin zu erkunden.
- Pre-tax NPV of $1,026M with 30.8% IRR
- Significant project improvements: 65% reduced operational area, 30% reduced water usage
- Increased material conversion efficiency from 1% to 60%
- Strong projected financials with $206M average annual EBITDA
- 26-year mine life with substantial production targets
- 5.1 years pre-tax payback period
- High initial CAPEX requirement of $487M
- Project still requires regulatory approvals
MINING LEASE APPLICATION SUBMITTED FOR NORRA KÄRR
Vancouver, December 8, 2024 – Leading Edge Materials Corp. (“Leading Edge Materials” or the “Company”) (TSXV: LEM) (Nasdaq First North: LEMSE) (OTCQB: LEMIF) announces that an application for an Exploitation Concession (“Bearbetningskoncession”) 25-year mining lease has been submitted to the Mining Inspectorate of Sweden (“Bergsstaten”) for the Norra Kärr Heavy Rare Earths (HREE) Project.
Norra Kärr had previously been granted a Bearbetningskoncession, in 2013, when the Company proposed that mining and all processing activities be located at the Norra Kärr site.
The Norra Kärr project was fundamentally redesigned in the 2021, following feedback from stakeholders, completely decoupling mining and chemical processing activities, with the latter relocated away from the mine site. The redesign was the basis for the Preliminary Economic Assessment completed in 2021 (“PEA 2021”). A reminder of the financial highlights from the PEA2021 are included later in this news release.
The Bearbetningskoncession application is accordingly for the quarrying operation that is proposed at the Norra Kärr site, producing a HREE concentrate and the industrial mineral nepheline syenite. Downstream chemical processing of the HREE concentrate will take place at an industrial park alongside similar industries, with Luleå being a preferred location.
When compared to the Pre-feasibility Study in 2015 (“PFS 2015”), the PEA 2021 reduced the area for operations at Norra Kärr by
Kurt Budge, Chief Executive Officer, states:
“Climate change, war and geopolitics are making critical raw materials headline news, with the Green Transition in Europe now sharing coverage with security and defense. The need for robust critical raw material supply chains is an imperative for the region.
In 2014, a report by The European Rare Earths Competency Network (ERECON) titled Strengthening The European Rare Earths Supply-Chain stated that ‘The development of new sources of heavy rare earths outside of China and greater recycling must [therefore] remain an urgent priority…’.
The Report, now a decade old, stated that ‘With adequate funding and permitting, mining could begin [at Norra Kärr] before 2020 and secure European REE supply for decades’.
The Norra Kärr journey started long before this, with its discovery by the Geological Survey of Sweden (SGU) in the early 1900s. In more recent times, SGU designated Norra Kärr a mineral deposit of national interest in July 2011, linked to its potential for providing a supply of rare earth elements to Sweden and Europe. At the time, the SGU stated "REEs are of great importance in modern society and access to these elements is very limited within Europe. Norra Kärr is a very important project from a material supply point of view, both for Sweden as well as for Europe. The mineral resource at Norra Kärr is the only NI 43-101 compliant REE resource in mainland Europe".
The new Bearbetningskoncession application is for a project with significantly reduced environmental impact and significantly increased sustainability. Proposed activities at the Norra Kärr site will be similar in nature to any other quarrying operation and downstream chemical processes will be removed from the mining site.
In August, the Company submitted an application to the European Commission (EC) for Strategic Project designation for Norra Kärr. Norra Kärr can make a significant contribution to Sweden and the EU’s preparedness, greater self-reliance and resilience when it comes to HREE requirements and the strategically important industries that depend on them.
Looking ahead, 2025 is shaping up to be a transformational year for Norra Kärr, with decisions to be taken on Strategic Project status and thereafter the Bearbetningskoncession. The Company is also planning for the start of Pre-feasibility.”
Recap – Preliminary Economic Assessment 2021 (PEA)
The PEA was prepared by SRK (UK) Ltd. (“SRK”) and all figures in the PEA are in US dollars unless otherwise specified. SRK re-evaluated the Project with the objective to improve resource utilization, project sustainability and substantially minimize its environmental footprint compared to the design in the PFS 2015.
Financial Highlights:
- Pre- and post-tax Net Present Value (NPV) of
$1,026M and$762M using a10% discount rate - Pre- and Post-tax Internal Rate of Return (IRR) of
30.8% and26.3% - Accumulated LoM project revenues of
$9,962M - Average annual EBITDA of
$206M - Initial Capital Expenditures (CAPEX) of
$487M - Pre-tax Payback Period from first production of 5.1 years
- Life of mine (LOM) average gross basket price per kg of separated mixed REO product at
$53 - Operating cost per kg of separated mixed REO product at
$33 including toll separation charges - By-product revenue per kg of separated mixed REO product
$19
Operational Highlights:
- LOM is 26 years
- LOM average annual:
- Mining rate of 1,150,000 tonnes
- Strip ratio of 0.32
- TREO 5,341 tonnes
- Main magnet rare earth oxides (MagREO) (Nd, Pr, Dy, Tb) 1,005 tonnes
- Nepheline Syenite co-product 732,885 tonnes
- Zirconium dioxide co-product 10,200 tonnes
- Niobium oxide product 525 tonnes
PEA 2021 news release: https://leadingedgematerials.com/leading-edge-materials-announces-positive-preliminary-economic-assessment-results-for-its-norra-karr-ree-project-with-us1026m-pre-tax-npv10-and-30-8-pre-tax-irr/
Norra Kärr’s Relevance to the EU:
Norra Kärr is an upstream asset that could be the EU’s first step in HREE primary production and the establishment of a secure, resilient, and sustainable value chain for REEs; helping to strengthen the EU’s self-reliance and to reduce strategic dependency on China.
There is a railway within 30 kilometers of the Norra Kärr site. The location provides uninterrupted road and rail access to Baltic ports and onto European markets where both REE refining capacity and REE enabled technology consumers are located.
EU demand for rare earth metals is expected to increase six-fold by 2030. The EU is almost
A report by The European Rare Earths Competency Network (ERECON) in 2014 titled Strengthening The European Rare Earths Supply-Chain stated that 'The development of new sources of heavy rare earths outside of China and greater recycling must therefore remain an urgent priority for Europe.'2
The report, now a decade old, stated that 'With adequate funding and permitting, mining could begin [at Norra Kärr] before 2020 and secure European REE supply for decades.' Norra Kärr is one of two 'best known' advanced stage REE projects in Europe, which given size and grade could potentially contribute to Europe’s security of supply of REE for decades to come.
In May 2023, the European Raw Materials Alliance (ERMA), in the report titled Materials for Energy Storage and Conversion - A European Call for Action3, identified over 50 investment cases targeting materials for energy storage and conversion across Europe and beyond, and a total investment need exceeding EUR 15 billion. Norra Kärr was one of the projects identified, that combined with the others, if realized, would make a significant contribution to the EU’s needs by 2030. The report acknowledged that there is limited primary production within the EU and for some materials related to energy storage, the EU relies almost entirely on imports.
Critical Raw Materials Act:
On 18 March 2024, the European Council adopted the regulation to establish a framework to ensure a secure and sustainable supply of critical raw materials, known as the Critical Raw Materials Act (CRMA).
The CRMA introduces clear deadlines for permit procedures for EU extracting projects, allows the Commission and member states to recognize a project as strategic, requires supply-chain risk assessments, requires member states to have national exploration plans and ensures the EU’s access to critical and strategic raw materials through ambitious benchmarks on extraction, processing, recycling and diversification of import sources.
On 23 May 2024, a call for Strategic Projects as defined by the CRMA was opened. The CRMA designates strategic projects to increase EU capacity to extract, process and recycle strategic raw materials and diversify EU supplies from third countries. Strategic raw materials are crucial for the success of the green and digital transitions as well as the resilience of the defense and aerospace sectors.
Sources:
1https://www.consilium.europa.eu/en/infographics/critical-raw-materials/
2https://ec.europa.eu/docsroom/documents/10882
3https://erma.eu/new-roadmap-for-a-value-chain-on-raw-materials/
On behalf of the Board of Directors,
Leading Edge Materials Corp.
Kurt Budge, CEO
For further information, please contact the Company at:
1.604.685.9316
info@leadingedgematerials.com
www.leadingedgematerials.com
About Leading Edge Materials
Leading Edge Materials is a Canadian public company focused on developing a portfolio of critical raw material projects located in the European Union. Critical raw materials are determined as such by the European Union based on their economic importance and supply risk. They are directly linked to high growth technologies such as lithium-ion batteries and permanent magnets for electric motors and wind power that underpin the sustainability transition of society. The portfolio of projects includes the
Additional Information
The information was submitted for publication through the agency of the contact person set out above, on December 08, 2024, at 11:30 PM Vancouver time.
Leading Edge Materials is listed on the TSXV under the symbol “LEM”, OTCQB under the symbol “LEMIF” and Nasdaq First North Stockholm under the symbol “LEMSE”. Mangold Fondkommission AB is the Company’s Certified Adviser on Nasdaq First North and may be contacted via email CA@mangold.se or by phone +46 (0) 8 5030 1550.
Reader Advisory
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