Australian Strategic Materials secured an exclusive option agreement with Caspin Resources (ASX:CPN) for up to 75% of the rare earth elements rights at Caspin's Mount Squires Project in Western Australia.

The move aligns with Australian Strategic Materials' strategy to expand its rare earth supply, focusing on high-value heavy REEs.

The move leverages the REE mineralisation at Mount Squires, potentially enhancing future output at Australian Strategic Materials' Dubbo Project facility.

The company plans metallurgical testing and drilling within three to nine months, aiming for full project potential before considering a joint venture with Caspin.