Australian Strategic Materials in trading halt ahead of scoping study results

Australian Strategic Materials Ltd (ASX:ASM) (OTCMKTS:ASMMF) has been granted a trading halt with results pending of a scoping study on the economics of establishing a Korean metals plant. The halt will remain in place until the beginning of regular ASX trading on March 2, or when an announcement is made to market, whichever occurs earliest. Shares last traded at $5.32 while the company’s market capitalisation is approximately A$666.7 million. Rare earth permanent magnets produced Recently, the company’s high-purity neodymium-iron-boron (NdFeB) powder from its Ziron Tech pilot plant in Korea has been used by the Korean Institute of Rare Metals (KIRAM) to produce rare earth permanent magnets. KIRAM produced two kilograms of pre-sintered permanent magnets and has carried out successful tests, confirming the magnetic properties and quality. This testing provides a strong indication that ASM’s NdFeB alloy is suitable to produce rare earth permanent magnets that are commercially in demand. ASM managing director David Woodall said: “ASM is now planning to advance in the next few months with the detailed engineering, incorporating both the recently produced titanium and now the permanent magnet powders as part of an initial 5,200 tonnes per year plant in Korea, projected to be fully operational by mid-2022.”