Meteoric Resources Granted Approval for Rare Earth Processing Pilot Plant in Brazil

Meteoric Resources (ASX: MEI) has achieved a critical breakthrough in the development of its Caldeira rare earth project in Brazil, with official government approval to construct and operate a rare earth pilot processing facility within the Poços de Caldas municipality.

With an estimated capital cost of A$2 million, the new facility will enable Meteoric to produce approximately two kilograms of mixed rare earth carbonate (MREC) daily.

Managing director Stuart Gale said the establishment of the pilot plant represents an important step in the development of Caldeira, allowing continuous production of MREC and confirming operational certainty for the project.

MREC Offtake Samples

Meteoric intends to send MREC samples from the pilot plant to potential offtake customers to assist in securing binding arrangements for future full-scale production.

The plant will also provide information on real-time optimisation of inputs to refine and finalise design parameters to minimise operational outlays and costs.

Meteoric is well-placed to begin construction and commissioning of the pilot plant, with all equipment already purchased and the majority on site awaiting the construction and operational licence.

With that licence now on hand, Meteoric plans to commence full-scale operations at the site in late October.

High-Quality Product

Production through the pilot will allow Meteoric to demonstrate to the community, offtake partners, downstream technology developers, investors, and regulatory agencies its ability to produce a high-quality MREC product.

“It is exciting to see the pilot plant constructing, capitalising on the enormous amount of work and effort delivered so far by all of our team,” Mr Gale said.

“Our geology, metallurgy and engineering teams have developed an unparalleled understanding of the Caldeira rare earth deposits that places us in an excellent position to develop and deliver the project.”

Capital Raising

The company will fund the pilot plant with proceeds from its successful $42.5m placement in late July.

The capital raising received strong support from existing and new international and domestic institutional investors, including key cornerstone commitments from leading North American funds, leaving Meteoric well-capitalised with a pro-forma cash balance in excess of $53m.

The placement coincided with the release of a Caldeira pre-feasibility study that included the unveiling of Meteoric’s maiden ore reserve of 103 million tonnes at 4,091 parts per million total rare earth oxides within a resource of 1.5 billion tonnes at 2,359 ppm.