- Rare earth element explorer Meteoric Resources has acquired a major asset in Brazil.
- Speculation in the analyst community suggests the company is a takeover target.
- The share price is up substantially year over year.
Like many junior miners exploring for a range of commodities in multiple countries, Meteoric Resource moved into the green metal space, acquiring a Brazilian Rare Earth Element Project with a history of exploration on 15 December 2022 – the Caldeira Project.
Meteoric management announced that the company was fully funded for additional exploration activity to build on existing results. At the time of the announcement, Meteoric shares were trading at around $0.01, with a current share price of $0.23 per share, an increase of 2200%.
Over five years the share price is up 1400%.
Source: ASX
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On 19 December, the company issued its first announcement to the market on progress at Caldeira, with initial metallurgical test work indicating a substantial portion of the project showing target rare earth elements recoverable via a simple washing process.
On 17 January, Meteoric announced the beginning of the drilling program at Caldeira. Since those two early announcements, the company has issued a string of positive results – thirteen in all.
The maiden resource estimate was delivered in May 2023, including a projected start date for a project scoping study, now underway.
An analyst at Novus Capital has a BUY recommendation on Meteoric Resources based on the scale of the Brazilian acquisition, the rising share price, and speculation the company could be a takeover target.
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