Highlights

  • Ark Mines shares declined 4.26% on 10 February 2026, despite announcing a rare earth processing MoU.
  • A monazite processing trial at the Sandy Mitchell Project is scheduled for February 2026
  • The trial targets recovery of Thorium, Neodymium and Praseodymium from monazite ore.
  • Subject to trial outcomes, the parties may progress to pilot-scale processing development.

ARK Mines Ltd (ASX:AHK) shares are down by 4.26% to AUD 0.45 on 10 February 2026. Although the stock has surged by 200% over the past one year, today’s decline came despite the company announcement of a Memorandum of Understanding (MoU) linked to its Sandy Mitchell Rare Earths Project in Queensland. The update outlined plans to undertake a processing trial focused on recovering Thorium and other rare earth elements.

MoU outlines processing trial framework

The company reported that it has executed an MoU with an existing processing technology provider to collaborate on a trial aimed at cracking monazite ore from Sandy Mitchell project. The agreement establishes a framework to test a low-cost, established processing method to recover Thorium and a range of rare earth elements from the ore.

While commercial terms of the MoU remain confidential, the scope of the collaboration spans the full processing pathway, from initial monazite cracking through to the production of rare earth oxides and refined Thorium. Sandy Mitchell will provide feed material for the trial programme.

Processing trial set to begin in February 2026

Under the MoU, the processing trial is scheduled to commence in February 2026 and will be conducted as a small-scale programme. The work will focus on recovering Thorium, Neodymium and Praseodymium and will include an integrated Phase 1 chemical analysis and separation chemistry proving campaign across all three materials.

The programme is designed to deliver comprehensive analytical characterisation, radionuclide profiling, reagent optimisation and separation chemistry testing within a single work stream. Up to three chemical process variations will be tested for each target material, with any additional variations subject to further agreement between the parties. The stated objective of this work is to support processing readiness and reduce downstream development risk.

Next steps outlined beyond initial test work

Subject to the successful completion of the trial programme, the MoU provides for the parties to jointly consider progressing to a scaled pilot plant programme. This next phase is intended to support downstream process validation and assist engagement with potential end-users and offtake counterparties.

Sector dynamics highlighted for rare earth elements

The update also highlighted the broader sector context, noting the growing importance of Thorium, Neodymium and Praseodymium as minerals linked to energy security, advanced manufacturing and defence applications.

Neodymium and Praseodymium are key inputs for permanent magnets used in wind turbines, electric vehicles and military systems, while Thorium has attracted renewed interest as a potential future nuclear fuel. The Sandy Mitchell project hosts an already announced resource that positions it as a potential long-life source of these materials

FAQs

Why did Ark Mines shares fall despite the MoU announcement?

The shares traded lower on the day despite the update, even though the company outlined a new processing trial under a Memorandum of Understanding. No specific reason for the market reaction was provided in the announcement.

What is the purpose of the MoU announced by Ark Mines?

The MoU establishes a framework to conduct a processing trial on monazite ore from the Sandy Mitchell Rare Earths Project, targeting the recovery of Thorium and other rare earth elements using existing technology.

What happens after the processing trial?

If the trial is completed successfully, the MoU allows the parties to consider progressing to a scaled pilot plant programme to support downstream process validation and engagement with potential end-users.