Perpetual will receive support from Invest Minas under the MoU. Pic: Getty Images
Perpetual Resources’ MoU with Invest Minas secures support for its projects in Minas Gerais
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- Perpetual Resources has signed an MoU with Brazil’s Minas Gerais state to advance its lithium, rare earths, and tin projects
- Invest Minas will provide support through all phases of project development and introduce the company to local suppliers
- Company will support Invest Minas in developing a battery feedstock supply chain
Special Report: Perpetual Resources has signed a non-binding memorandum of understanding with the Government of Minas Gerais and Invest Minas to advance its projects in the state.
Under the MoU, the company will be able to access support from the state’s investment and foreign trade promotion agency through all phases of project development, including facilitation of approvals, all project-related licensing and other requirements.
Invest Minas will also support Perpetual Resources (ASX:PEC) through the introduction to and interaction with local suppliers that can assist in advancing its lithium, rare earths and tin projects.
In return, the company will support Invest Minas’ efforts to develop an emerging battery feedstock supply chain in Minas Gerais.
“We are honoured to have partnered with Invest Minas to advance our exciting lithium, rare earth and tin projects in the State of Minas Gerais, Brazil,” executive chairman Julian Babarczy said
“To have received such support for our projects from the State Government is a strong endorsement of the quality of our exploration assets and underpins our ability to advance these projects with full support from local and state governments divisions.
“We thank Invest Minas for their pioneering assistance to companies such as ours, which acknowledges the strong shared benefits that Perpetual and the State of Minas Gerais will receive upon successful exploration and development of our projects.”
Supporting strategic projects
Secretary of State for Economic Development of Minas Gerais Fernando Passalio said the agreement highlighted Minas Gerais as an investor-friendly state with a business-friendly environment based on economic freedom and legal security.
“We have a strong trade relationship with Australia, as the numbers show, and this partnership will further boost strategic mineral projects in Minas Gerais – such as lithium, rare earths, and tin – contributing to job creation and local economic development.”
Invest Minas chief executive officer João Paulo Braga said the MoU reaffirmed the state’s commitment to supporting strategic projects in lithium, rare earth elements, and tin.
“Invest Minas strives to foster a favourable environment for sustainable development by facilitating partnerships, connecting with local suppliers, and supporting all phases of project approvals and licensing,” he added.
“Our goal is to strengthen the battery material supply chain and attract investments that drive local economic growth, creating new opportunities for development and employment.”
Perpetual projects
The MoU supports PEC during the exploration, development and operational stages at each of its Raptor, Isabella and Itinga projects in the state.
Initial drilling at Raptor returned near surface intersections with grades that compare favourably to those seen at Meteoric Resources’ (ASX:MEI) nearby Caldeira project, which has a resource of 545Mt grading 2561 parts per million total rare earth oxides.
Drilling also demonstrated significant quantities of highly valuable magnet rare earth elements neodymium and praseodymium, with intersections including 5m at 5591ppm TREO (35% NdPr) and 12m at 4601ppm TREO (23% NdPr).
The four Raptor tenements cover 380 hectares within the 800km2 Poços de Caldas Alkaline Complex in the Caldeira REE region of Minas Gerais.
PEC is looking to release a resource estimate for the project next year.
Isabella sits within Brazil’s prolific Lithium Valley and was recently the subject of a Phase 1 exploration program that successfully identified multiple spodumene occurrences trending more than 1km.
These trends, which remain open along strike, indicate the potential for parallel structures to exist outside the main corridors supporting evidence of further potential occurrences within the project area.
It is adjacent to Atlas Lithium’s (NASDAQ:ATLX) Das Neves project, where 1.47% Li2O over 95.2m was reported in a drill hit and a lithium processing plant is expected to come online in Q4 2024.
Meanwhile, rock chip sampling at Itinga returned up to 7.4% tin along with anomalous lithium, rubidium, niobium and manganese.
This article was developed in collaboration with Perpetual Resources, 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.
