Auxico Resources Inks Deal With Minampro To Mine Tantalum, Niobium Rare Earth Metals In Vichada, Colombia

Auxico Resources Canada (CSE: AUAG) has announced that it has entered into a memorandum of understanding with the Colombian company Minampro Asociados S.A.S. to earn a 70% interest in a joint venture for the exploitation and trading of tantalum ore industrial sands originating from properties in the department of Vichada, Colombia.

Tantalum (above photo) is an important metal for electronics – especially capacitors, and laboratory equipment. Niobium is important for the space industry and is also used in jewelry.

The program confirmed the presence of tantalum and niobium, as well as various rare earths including: ytterbium, hafnium, neodymium, scandium, dysprosium, praseodymium and gadolinium.

Minampro has the necessary licenses for the buying, selling and exporting of industrial sands containing various metals, including tantalum and niobium. Furthermore, Minampro has an exclusive purchase agreement for industrial sands (tantalum ore) with the indigenous community Guacamayas-Maipore, located in the department of Vichada. The key properties are located within 100 kilometres from an airport and are accessible by roads. 

Vichada is a vast, flat, sparsely populated region of Colombia bordering Venezuela to the East, and part of the Orinoco river watershed. Though geographically it is one of the largest departments in Colombia, it has an entire population barely exceeding 100,000 people. In addition to the Guacamayas-Maipore, it is home to 5 other recognized indigenous communities.

In 2019, Auxico conducted an exploration and sampling program on properties located in this area. Mr. Miguel Jaramillo, an independent geologist, supervised the work and submitted a report about the results obtained in the sampling program to Auxico. The program confirmed the presence of tantalum and niobium, as well as various rare earths including: ytterbium, hafnium, neodymium, scandium, dysprosium, praseodymium and gadolinium. An accredited Canadian lab conducted all analyses on the samples from these properties.

Under the terms of the MOU, Auxico has 60 days to conduct due diligence, after which the parties agree to enter into a joint venture for the properties in the department of Vichada. Auxico will have a 70% share of the net profits of the JV for committing 100% of the capital required for the exploitation of the ore sands. Minampro will retain 30% of the net profits of the JV. Auxico will also have an option to purchase 15% of the profit interest of Minampro at a price to be agreed upon.

Samples from the properties are currently being sent out to various tantalum buyers, and the company expects commercial sale to start within the next 60 days. 

Headline image by Alchemist-hp (www.pse-mendelejew.de) – Own work, FAL