New Earth Resources has secured an option agreement with Northex Capital Partners to acquire the Red Wine rare earth project in Labrador, Canada. The project covers approximately 1,575 hectares, with the main claim situated in the Central Mineral Belt of Newfoundland and Labrador, located northeast of Churchill Falls.

The project also includes a secondary claim about 9km to the northeast, totaling around 1,425ha. New Earth Resources is obligated to issue 4.5 million Class A common shares to Northex in stages over two years. Shares will be subject to a four-month hold period as per securities laws.

In addition to the share issuance, Northex will receive a 2% net smelter returns royalty on the Red Wine rare earth project. Northex is an independent party to New Earth Resources, a mineral exploration company with assets including the Lucky Boy Uranium Property in Arizona and uranium claims in Saskatchewan. The agreement was reported by Mining Technology.

Read more at Yahoo Finance: New Earth Resources secures option agreement for Red Wine rare earth project