** Shares of Core Energy Minerals CR3.AX rise as much as 40% to A$0.014, their highest since October 23

** The mineral explorer enters binding agreement to acquire 100% of Itambe Rare Earth Element Project from Rio Tinto Desenvolvimentos Minerais, a unit of Rio Tinto RIO.AX

** Purchase price of $200,000 cash and net smelter return royalty of 1.75%, adds CR3

** About 6.2 million shares change hands, 4.9x 30-day average

** YTD, stock down 52%, including the day's move

(Reporting by Sherin Sunny in Bengaluru)

((Sherin.Sunny@thomsonreuters.com))