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Tasman Metals to acquire rare earth project in Sweden nearby Norra Karr

Tasman Metals (CVE:TSM) announced Thursday it will acquire a 100% interest in the Olserum heavy rare earth element (NYSEMKT:REE) project in southern Sweden in an all-share deal.

The property is located 100 kilometres east of Tasman's flagship Norra Karr project, and was purchased from private U.K. company, Norrsken Energy. In consideration for the property, Tasman will issue 37,746 of its common shares to Norrsken, though it didn't disclose at what price.

The project is covered by a 1,100-hectare exploration claim, and a surrounding exploration claim application that measures 7,800 hectares in size.

Olserum's REE potential was first discovered in the 1990s, when several REE anomalous samples were collected and assayed during a geological survey. The presence of yttrium and iron ore was noted. In 2003, Swedish explorers IGE claimed the area to concentrate on iron ore.

However, between 2004 and 2005, IGE drill 24 diamond drill holes, targeting the REE mineralization. Notable results included hole OL0401, which found 14.6 metres grading 1.38% total rare earth oxide (TREO) and 37.8% heavy rare earth oxide (HREO)/TREO. Hole OL0513 returned 34.0 metres at 0.81% TREO and 37.6%HREO/TREO, while hole OL0516 found 10.0 metres grading 1.07% TREO and 45.6% HREO/TREO.

The mineralization measures 600 metres long and up to 100 metres wide. It occurs as two sub-parallel zones, each of which remain open to the east and at depth, trending about east-west and dipping steeply to the north.

Tasman said limited further drilling is required to establish an NI 43-101 compliant resource estimate for the property.

"Grade and thickness of the existing drill intersections are very encouraging considering the high percentage of the high value heavy rare earth elements that are present," commented president and CEO, Mark Saxon.

"The effective metallurgical test, and the existing infrastructure on site, set Olserum apart as a high potential project.

"Olserum's close proximity to our flagship Norra Karr heavy rare earth project will allow it to be explored efficiently, and we will move quickly to complete further drilling, mineralogy and metallurgical studies."

The acquisition is subject to customary regulatory approvals. If approved, Tasman's shares will be held in escrow for four months from the date of issue.