Australian Strategic Materials (ASX:ASM) said it will not exercise its option as per its option agreement with Caspin Resources (ASX:CPN), according to a Friday ASX filing.
The agreement provided for Australian Strategic Materials with an option to earn up to 75% of the rare earth element rights in Caspin's Mount Squires project in Western Australia through staged earn-in rights.
The decision came after metallurgical testwork on samples from the project. The period to exercise the option will expire on May 31.
Its shares fell 3% on market close.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.