The New South Wales-focused copper-gold explorer has struck to a deal with Peter Secker's UK-based concern Temarise to fund A$3.9 million of work to deliver a scoping study in return for a share in what Parabellum describes as "one of the world's largest undeveloped REE deposits".
A JORC 2004 resource was released in 2013 suggesting Khotgor contains 350 million tonnes grading 0.96% rare earth oxides. A further 31 diamond holes have been completed since 2019.
The link between Parabellum and Temarise is Parabellum chair Mark Hohnen.
Hohnen previously ran Kalahari Minerals and Extract Resources, and is now chair of uranium developer Boss Energy, while Secker used to head up China-focused miner Michelago Gold, and is CEO of Hohnen's Bacanora Lithium.
Secker, who spent more than a decade working in China, founded Temarise with Battuya Gankhuyag.
The deal will see Parabellum complete the scoping study, updated JORC resource, drilling and test work over the Khotgor mining licence, which is said to be valid until 2040.
Khotgor is close to globally significant operations, including Rio Tinto's Oyu Tolgoi copper mine, and is just 300km from the Chinese border, the world's largest REE market.
The scoping study is expected to be completed in the March quarter, 2023.
The advanced project was defined during copper-gold exploration by Canada's QGX and Mongolia's Khotgor Minerals between 2007 and 2014, but after C$12 million was spent QGX quit the project after the collapse in REE prices.
Khotgor is described as a vertical pipe-like REE system with veins up to 20m thick, which extend to some 200-300m below the surface.
Hohnen said Khotgor had the potential to be a major supplier of rare earth magnet inputs such as neodymium and praseodymium, although the percentage of heavy REOs has not been reported.
The deal for a 30% stake in Temarise, which has an option over 80% of Khotgor, is conditional on Parabellum raising at least the A$3.9 million to cover the earn-in costs.
The junior completed an oversubscribed $6 million initial public offer last November at 20c, and says those funds will remain directed to NSW. It has around $4.6 million in remaining cash.
The stock has traded as low as 15c since listing at low volumes, but its shares hit an all-time high of 28c today, and were trading this morning up 25% at 25c, valuing it at $11 million.
