Red Wine Rare Earth Project Option Agreement Strengthens New Earth Resources’ Exploration Portfolio

New Momentum for the Red Wine Rare Earth Project Option Agreement

New Earth Resources strengthens its exploration pipeline by securing the Red Wine Rare Earth Project Option Agreement with Northex Capital Partners. The agreement gives the company rights to acquire two mineral claims totaling 1,575 hectares in Labrador, Canada. The main claim covers 1,425 hectares in the Central Mineral Belt. It lies 110 km northeast of Churchill Falls, near the Orma Lake hydro access road and the Trans-Labrador Highway.

The company also gains a smaller 150-hectare claim located 9 km northeast of the main site. The Red Wine Rare Earth Project Option Agreement expands New Earth Resources’ footprint in a region with strong rare earth potential and solid infrastructure. Under the agreement, the company will issue 4.5 million Class A common shares to Northex over two years. This staged approach ensures a structured and transparent transfer.

The deal also grants Northex a 2% net smelter returns royalty. Meanwhile, New Earth Resources continues growing its asset base. Its portfolio includes the fully owned Lucky Boy Uranium Property in Arizona and uranium claims in Saskatchewan. The agreement aligns with the company’s strategy to secure high-value mineral assets critical for North America’s rare earth supply chains.

Share Structure and Strategic Positioning Under the Option Agreement

New Earth Resources follows a clear schedule for share issuance under the agreement. The company will issue 1.25 million shares within ten business days of signing. Another 1.5 million shares will be issued by the first anniversary, and 1.75 million shares by the second anniversary. Each issuance is subject to a four-month hold under Canadian securities law. This approach ensures market stability and regulatory compliance.

SuperMetalPrice Commentary:

New Earth Resources positions itself well within the growing rare earth sector as Western markets push to diversify supply chains away from concentrated global sources. The Red Wine acquisition broadens the company’s exposure to critical minerals while complementing its uranium portfolio in Arizona and Saskatchewan. Investors should monitor early exploration updates closely, as rare earth projects in Canada often gain rapid strategic interest due to geopolitical and energy-transition trends.