High-grade rare earths spur Brazilian Critical Minerals’ $3.4m cap raise

Brazilian Critical Minerals reports high-grade neodymium and praseodymium at Ema project, resource update on the way
Results spur $3.4m cap raise to further exploration activities
Resource update and scoping study for Ema on the way

Special Report: On the back of high-grade NdPr results from drilling at its Ema rare earths project, Brazilian Critical Minerals’ has rattled the tin for $3.4m.

The rare earths hunter has firm commitments for $500,000 through a share placement and is raising up to $2.9m through a 1-for-3 rights issue to finalise a resource update, further metallurgical work and kick off preliminary feasibility studies for Ema.

Under the placement, the company will issue 38,451,909 shares at an issue price of 1c (Tranche 1), and a further 11,548,091 shares at the same price as part of Tranche 2.

While the 1 for 3 pro-rata non-renounceable rights issue of 289,730,445 shares aims to raise up to ~$2.9m.

Brazilian Critical Minerals’ (ASX:BCM) world-class ionic adsorbed clay rare earth elements deposit has a defined inferred resource of 1.02Bt at 793ppm total rare earth oxides, with metallurgical recoveries averaging 68% magnetic rare earth oxides (MREO), among the highest seen for this type of deposit anywhere in the world.

Ema is also unique amongst Brazilian REE projects in that it shares almost identical characteristics with the ionic REE deposits in south-west China, the world´s largest known ionic clay region, responsible for producing more than 80,000t of total rare earth oxides – around ~40% of the world’s total – in 2024.

The first assays from 45 holes of the company’s 270-hole mineral resource infill drilling program have returned over 500ppm TREO across multiple holes, confirming the consistency of mineralisation across broad areas.

The results also highlighted persistent high neodymium (Nd) and praseodymium (Pr) grades observed in the lower horizon (10-20m below surface), indicating a robust zone of mineralisation that could enhance the project’s economic viability.

Notable intercepts include:

9.3m at 1347ppm TREO from 4m, including 5m at 1570ppm TREO ending in 891ppm TREO
6m at 1103ppm TREO from 8m, including 3m at 1531ppm TREO ending in 1767ppm TREO
8m at 1026ppm TREO from 2m, including 3m at 1452ppm TREO ending in 1418ppm TREO
9m at 931ppm TREO from 1m, including 5m at 1181ppm TREO ending in 1193ppm TREO; and
9m at 725ppm TREO from 3m, including 1m at 1180ppm TREO ending in 1180ppm TREO.

Scoping study in the works

BCM says the high-grade intercepts from this drilling warrant further investigation to define priority zones for in situ recovery methods, as these high-grade zones have the potential to significantly impact resource extraction strategies.

A mineral resource update is being planned off the back of the new assays, with the drilling program now 70% completed and expected to be wrapped up by November.

Concurrently, the company is progressing a scoping study which is due in mid-December, along with metallurgical testing.

Plus, an environmental baseline assessment has also commenced on site.

BCM says all of these work programs will inform the economic viability of the project.

This article was developed in collaboration with Brazilian Critical Minerals, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.