The exploration license applications cover 1380sq.km of ground on either side of Australian Rare Earths' Red Tail and Yellow Tail deposits, which have a resource of 39.9 million tonnes at 725 parts per million total rare earth oxide.
The project is being acquired from Brent Palmer, Blackbird Capital and Harbour View Capital for 4.7 million shares, escrowed for 12 months, 4 million performance rights on the achievement of certain project milestones, and a 1% net smelter return.
The deal is conditional on Resource Base completing a placement of at least A$1.2 million, under which the vendors have the right to allocate up to $700,000.
Candour Advisory was appointed as lead manager, with Blue Bird Capital, an affiliate of the vendors, acting as co-bookrunner.
Resource Base received commitments for the placement of 6 million shares at 20c each, a 2.4% discount to the last closing price, along with a one-for-two 25c option.
The deal will increase Resource Base's shares on issue from 43.6 million to 54.6 million and will require shareholder approval.
"We are very excited to have secured multiple applications with prospectivity for ionic clay hosted rare earths mineralisation in such prospective parts of Victoria and South Australia," Resource Base executive chairman Shannon Green said.
"The recent announcements of significant ionic clay hosted rare earths by AR3 has highlighted the potential of this region.
"Establishing a substantial footprint in this highly prospective region is a tremendous addition to our Black Range copper-gold project located approximately 150km away in the Stavely Arc of Western Victoria.
"We are focused on expanding our portfolio across the region and will look to provide an extensive pipeline of exploration and growth opportunities exploring these two highly complementary projects which will both provide a solid stream of exploration news over the coming 12 months.
"Furthermore, we consider both rare earths and copper to have strong demand fundamentals well into the future, thus providing a solid foundation for Resource Base to grow into a significantly larger diversified minerals company."
Resource Base listed on the ASX in July following a $5.5 million initial public offering at 20c.
Its shares rose as high as 31c today, an all-time high, and last traded 22% higher at 25c.
