Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Strategic Elements ups rare earths exploration footprint, lodges prospecting licenses in Ireland

Newly listed Strategic Elements (ASX: SOR) has lodged applications for six prospecting licenses in the Republic of Ireland for exclusive rights to rare earths, rare metals and gold covering 150 square kilometres.

The company listed on the ASX today having recently closed its oversubscribed prospectus, and is the first rare earths Pooled Development Fund on the Australian Stock Exchange.

The applications have been made through 100% owned Strategic Materials Pty.  The company aims to unlock the rare earths potential of the Emerald Isle, whose licenses are usually granted very quickly, enabling the company to start work within the next few months.

Charles Murphy, managing director, said “we are extremely excited about our Irish projects. The rare earths/metals potential of the country has been seriously overlooked. Ireland also provides a very secure mining system, has low levels of corruption and is a low cost country in which to operate.

“Once our Geologists complete their reports we will update the market with details on the potential scale of our activities in Ireland. We are exceptionally keen on the areas we have identified."

For those unaware, Ireland is a major zinc-lead mining province that also has gold and base metal potential. The country also has modern infrastructure with a highly developed road network, good railroads, and good communications facilities.

Strategic Elements has over $4 million cash post the IPO in hand and plans to invest in large projects to discover economic deposits of rare earths, mine these minerals and develop them into value added materials.

Immediate Focus in New Zealand

The company sees outstanding opportunities in New Zealand where it has exclusive coverage of over 875 square kilometers of ground where the company is seeking to prove a new rare earths/metals province adjacent to the Alpine Fault.

Strategic Elements is planning an aggressive exploration program comprising  a systematic stream survey, seeking to unearth the rare earths and rare metals potential which has "remained completely overlooked,” according to the company.

Rare Earths Sector Momentum

The company expects dramatic shifts in the structure of the global rare earths market in the coming year as China, the world’s dominant exporter of rare earths, begins the transition to becoming a net importer of some rare earths. 

Murphy added, “this is just the beginning of the cycle where rare metals become critical strategic materials for governments and technology industries."

As the company will only pay a corporate tax rate of 15% on PDF income and 25% on other income, it is well placed to benefit from this cycle.