Everest-US Defence partnership opens funding for WA rubidium play

Everest Metals has secured a seat at a high-level table after being accepted onto the United States Department of Defence’s (DoD) Defence Industrial Base Consortium, thanks to its Mt Edon rubidium project in Western Australia’s Mid West region.

Consortium membership will support Everest’s research to advance its high-grade Mt Edon rubidium processing technology as the company bids to become Australia’s first rubidium supplier.

The consortium is managed by US-based Advanced Technology International. Membership opens the door to prototyping opportunities, streamlined contracts and direct collaboration with US defence initiatives.

Management is confident Everest will gain access to non-dilutive DoD funding through its membership, which would allow it to capitalise on a red-hot critical minerals market and future strategic US alliances.

The company says the development will supercharge Mt Edon, where a maiden inferred resource of 3.6 million tonnes at 0.22 per cent rubidium oxide holds more than 7900t of the scarce critical mineral.

The real kicker for Everest is not the resource, but its patented direct rubidium extraction (DRE) technology, which has a staggering 97 per cent recovery rate. The company believes it can refine its technology with partners Edith Cowan University and the CSIRO, through a commercial pilot plant planned for next year.

Everest has grant applications in with the Minerals Research Institute of Western Australia, which, added to consortium funding, gives management the confidence to scale up its pilot plant vision while reducing any reliance on shareholder capital.

We are thrilled to join the DIBC, a testament to the strategic importance of our Mt Edon rubidium project. This approval opens doors to collaborate with the US Department of Defence, access non-dilutive funding and advance our goal of establishing a commercial rubidium pilot plant. With rubidium’s critical applications in defence and high-tech industries and forecast growing demand, Everest is well-positioned to address global supply constraints and meet growing demand for this extremely scarce mineral.

Rubidium is fetching a hefty US$1170 (A$1810) per kilogram for carbonate and is a linchpin for defence, aerospace and high-tech applications, including in night vision imaging, atomic clocks and medical sedatives.

With global demand projected to soar from US$4.46 billion (A$6.9B) in 2023 to US$7.2B by 2032 and China’s grip on supply tightening, Everest’s Mt Edon project could be perfectly timed to meet US calls for a secure, Western-aligned rubidium source.

The project’s granted mining lease in the Paynes Find Greenstone Belt, 420 kilometres northeast of Perth, means the company has cleared another operational hurdle. Everest says shallow pegmatites start from surface at Mt Edon and are primed for an open-pit mining scenario.

With a high-grade resource, proven extraction technology and a direct line to US defence priority spending, Everest is shaping up as a critical minerals frontrunner. The company will now gear up for its pilot plant development and further testwork, as it sorts through an array of non-dilutive funding opportunities in the global critical minerals landscape.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au