QIC Commits $4.5M to Ark Mines’ Sandy Mitchell Project Targeting 2027 Production

• $4.5 million funding package from QIC’s Critical Minerals and Battery Technology Fund
• Funding includes $4 million upfront tied to royalties and $500,000 equity investment pending shareholder approval
• Stage-3 infill drilling underway to expand measured mineral resource
• Pre-Feasibility Study scheduled for early 2026 to refine project economics
• Production targeted for late 2027 with around 80 local jobs expected

Strategic Investment to Accelerate Rare Earths Development

Ark Mines Limited (ASX, AHK) has secured a significant $4.5 million investment from the Queensland Investment Corporation’s Critical Minerals and Battery Technology Fund (QCMBTF). This funding is earmarked to fast-track development at the company’s flagship Sandy Mitchell Rare Earth and Heavy Mineral Project, located approximately 230 kilometres northwest of Cairns in North Queensland.

The investment package comprises $4 million in upfront funding linked to royalties on future product sales, alongside a $500,000 equity stake subject to shareholder approval. This structure provides Ark Mines with a non-dilutive capital injection to advance its near-term work program while aligning with the Queensland Government’s strategic objective to bolster domestic critical minerals supply chains.

Advancing Resource Expansion and Project Economics

Ark Mines is currently executing a stage-3 infill drilling program aimed at significantly increasing the existing measured mineral resource estimate of 71.8 million tonnes at 1,732.7 parts per million Monazite Equivalent. These drilling results will feed into a comprehensive Pre-Feasibility Study (PFS) slated for early 2026, which is expected to enhance the project’s economic outlook and operational parameters.

Complementing the drilling, metallurgical testing is underway to refine beneficiation and mineral separation processes, critical steps for efficiently extracting rare earth elements. The project’s rare earth profile includes both light and heavy rare earths, with valuable magnet metals such as neodymium and praseodymium comprising up to 25% of total rare earth oxides.

Economic and Regional Impact

With production targeted for late 2027, the Sandy Mitchell project is poised to create approximately 80 local jobs, reinforcing its role as a catalyst for regional economic growth. The QCMBTF’s involvement underscores the Queensland Government’s commitment to nurturing critical minerals projects that meet stringent investment criteria and contribute to the state’s clean energy ambitions.

Ark Mines’ Managing Director Ben Emery highlighted the strategic alignment with government policy, emphasizing the company’s ambition to become a leading Australian supplier of rare earths to both domestic and international markets. The funding agreement follows a rigorous due diligence process, reflecting confidence in the project’s potential and the company’s development strategy.

Looking Ahead

As Ark Mines progresses with drilling and metallurgical programs, investors will be watching closely for updates from the upcoming Pre-Feasibility Study and shareholder approval outcomes for the equity component of the funding. The successful execution of these milestones will be critical to maintaining momentum toward first production and capitalizing on the growing demand for critical minerals in clean energy technologies.

Bottom Line?

Ark Mines’ $4.5 million QIC-backed boost sets the stage for a pivotal growth phase in Queensland’s rare earths sector.

Questions in the middle?

• Will shareholder approval for the $500,000 equity investment proceed smoothly and on schedule?
• How significantly will the stage-3 infill drilling increase the measured mineral resource at Sandy Mitchell?
• What impact will the Pre-Feasibility Study have on the project’s development timeline and economics?