New Earth Resources secures option agreement for Red Wine rare earth project

Core Insights - New Earth Resources has entered into an option agreement with Northex Capital Partners to acquire the Red Wine rare earth project located in Labrador, Canada [1][4] - The project encompasses two non-contiguous mineral claims totaling approximately 1,575 hectares [1][2] Project Details - The primary claim spans around 1,425 hectares and is situated approximately 110 km north-east of Churchill Falls, with proximity to the Orma Lake hydro access road, which connects to the Trans-Labrador Highway [2] - A secondary claim adds approximately 150 hectares and is located about 9 km to the north-east of the primary claim [2] Financial Terms - New Earth Resources is required to issue a total of 4.5 million Class A common shares to Northex, with the issuance occurring in stages: 1.25 million shares within ten business days of the agreement, 1.5 million shares by the first anniversary, and 1.75 million shares by the second anniversary [3] - All shares issued will be subject to a four-month hold period in compliance with applicable securities laws [3] Royalty Agreement - In addition to the share issuance, New Earth Resources will grant Northex a 2% net smelter returns royalty on the Red Wine rare earth project [4] Company Background - Northex Capital Partners is an arm's-length party to New Earth Resources and focuses on acquiring and advancing mineral exploration assets, with its flagship asset being the 100%-owned Lucky Boy Uranium Property in Arizona, US [4] - The company's portfolio also includes three uranium claims in Saskatchewan, Canada, covering a combined area of 365 hectares [5]