HRE Advances Uranium Exploration with 2,949 km2 Asset Acquisition and $2.46M Capital Raise

Strategic Uranium Asset Acquisition

Heavy Rare Earths Limited (ASX:HRE) marked a significant milestone in its growth trajectory during the December 2024 quarter by progressing and completing the acquisition of uranium exploration rights from Havilah Resources Limited. This transaction grants HRE an initial 80% interest in uranium rights across three projects, Radium Hill, Lake Namba-Billeroo, and Prospect Hill, spanning nearly 3,000 square kilometres in South Australia's prolific Curnamona Province.

The region is notable for hosting operating in-situ leach uranium mines such as Four Mile and Honeymoon, alongside historic deposits like Radium Hill. HRE’s strategy focuses on exploring extensions of known uranium deposits and palaeochannels, which are promising geological features for uranium mineralization.

Exploration Progress and Early Results

During the quarter, HRE initiated geophysical exploration programs at Lake Namba-Billeroo and Prospect Hill, engaging Perth-based Atlas Geophysics to conduct passive seismic and gravity surveys. These surveys aim to delineate palaeochannels at depths less than 120 metres, with initial efforts concentrating on the Billeroo Palaeochannel, which hosts Boss Energy’s Gould’s Dam uranium resource.

At Radium Hill, sampling of historic davidite-bearing mineralization from mine dumps and lode extensions revealed high concentrations of uranium, rare earth elements (REE), and scandium. While these results are preliminary and not yet representative of the broader mineralization, they validate historical observations and justify further detailed exploration and metallurgical testing.

Western Australia’s Perenjori Project and Future Plans

HRE’s 100% owned Perenjori project in Western Australia, which shows potential for calcrete-type uranium and ion adsorption rare earth deposits, saw no field activity during the quarter. However, the company plans to resume exploration activities, including passive seismic surveys and soil sampling, in the March 2025 quarter, aiming to build on the inferred palaeochannel system delineated in 2024.

Financial Position and Capital Raising

Financially, HRE strengthened its position by successfully completing a two-tranche placement and a fully underwritten entitlement offer, raising a combined $2.46 million at $0.03 per share. This capital injection provides the company with a robust cash balance of approximately $2.78 million at the end of the quarter, supporting ongoing exploration and development activities.

Operating cash outflows remained modest, reflecting disciplined expenditure on exploration and corporate costs. The company’s cash runway extends beyond nine quarters at current burn rates, offering a comfortable buffer for advancing its projects.

Outlook and Market Positioning

Heavy Rare Earths is positioning itself to capitalize on the growing demand for uranium and rare earth elements, critical components in clean energy technologies and advanced manufacturing. The acquisition of uranium rights in a proven mining province, combined with encouraging early assay results and a solid financial footing, sets the stage for potentially transformative exploration outcomes in 2025.

Investors will be watching closely as HRE progresses its geophysical surveys and begins systematic drilling campaigns, which will be pivotal in defining resource potential and advancing the company’s development pipeline.