Ark Mines Limited (ASX: AHK), an Australian mineral exploration company focused on developing its 100% owned projects located in Northern Queensland, has announced a $4.5 million investment from the QIC Critical Minerals and Battery Technology Fund (QCMBTF) to accelerate development at its Sandy Mitchell Rare Earths Project. The Sandy Mitchell project is located 230km north-west of Cairns. The funding agreement marks a significant step in Ark Mines’ strategy to bring the Sandy Mitchell project into production.
The QCMBTF’s investment comprises $4 million in upfront funding tied to royalties based on future product sales from Sandy Mitchell, and a $500,000 equity investment, subject to shareholder approval. The agreement follows a collaborative due diligence process, reflecting the Queensland Government’s commitment to supporting Queensland-based resource projects. The royalty payable to the QCMBTF will be calculated and paid quarterly and based on 2% of gross revenues calculated in Australian dollars from the future sale of products from Sandy Mitchell.
The funding will facilitate the rapid acceleration of project development at Sandy Mitchell, with stage-3 infill drilling currently underway. Results from this drilling will be incorporated into an upcoming Pre-Feasibility Study (PFS). Ark Mines is targeting production in late 2027. Managing Director Ben Emery stated the investment delivers long-term alignment with the state government’s policy objective to position the North Queensland region as a key supplier of critical minerals.
It is expected that approximately 80 local jobs will be created when production commences at Sandy Mitchell. Near-term, Ark Mines aims to significantly increase the Mineral Resource at Sandy Mitchell from the current Measured Mineral Resource Estimate (MRE) of 71.8 Mt @ 1,732.7ppm Monazite Equivalent.
