Diatreme Resources (ASX: DRX) has bolstered its financial position through the sale of intellectual property rights related to scandium extraction and refining process technology. The IP, previously held by Touchstone Resources Pty Ltd, a subsidiary acquired through the Metallica Minerals Limited acquisition, was sold for $562,500. The technology was initially developed for the SCONI Scandium Cobalt Nickel Project between 2011 and 2012 but had remained dormant since. Element 21 Pty Ltd facilitated the sale after expressing third party interest in the IP in April 2024.
Diatreme’s CEO, Neil McIntyre, stated that the proceeds would be allocated to advancing the company’s silica sand projects in North Queensland, with a particular emphasis on the flagship Northern Silica Project. This influx of funds supplements Diatreme’s existing cash reserves, which stood at $21.4 million as of December 31, 2024 ($5.1 million held by Diatreme and $16.3 million in the silica sand projects joint venture). According to the company, this positions Diatreme favorably to achieve its development goals.
Diatreme Resources is an emerging Australian silica and mineral sands producer based in Brisbane. Their primary assets include the Northern Silica Project and Galalar Silica Sand Project, both situated in Far North Queensland, adjacent to the Cape Flattery silica sand mine. Sibelco, a global material solutions group, has invested approximately $49 million in Diatreme’s silica sand projects portfolio and the company itself. The Northern Silica and Cape Flattery projects have both been designated as “Coordinated Projects” by the Queensland Government, strategically located near the export-focused Cape Flattery Port. Diatreme’s silica sand resources are intended to contribute to decarbonization efforts by providing high-grade silica for the solar PV industry.
