Alkane Resources has made "significant progress" in its plan to separate from Australian Strategic Metals (ASM), the owner of the $1.3 billion Dubbo Project.
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ASM is a wholly-owned subsidiary of Alkane Resources, which has struggled to finance the development-ready Dubbo Project based on a large in-ground resource of zirconium, hafnium, niobium, yttrium and rare earth elements at Toongi.
The Dubbo Project is called "a potential strategic and independent supply of critical minerals for a range of sustainable technologies and future industries".
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In its latest quarterly activities report to the Australian Securities Exchange (ASX), Alkane Resources reports its board is committed to the demerger but reviewing the timing of it on a month-to-month basis "given the very turbulent market conditions".
"Internally within Alkane, ASM is being treated as a separate entity managed by Mr (David) Woodall as much as possible, with allocated budget and resources," the company states in the report.
"..management is currently working towards a timetable that would see ASM listed in the third quarter of 2020.
"Execution of this timetable is dependent upon receipt of final regulatory approvals and waivers and final board approval."
In March, Export Finance Australia (EFA) confirmed interest in financing the Dubbo Project as it aligned with the plan to develop Australia's "critical minerals" sector.
"Further positive engagement with Export Finance Australia, Australia's export credit agency, occurred during the quarter with confirmation that the EFA would be pleased to be part of the financing consortium in providing the required financial support for the development of the Dubbo Project," the company stated.