Perpetual Resources acquires strategic rare earths option in Brazil’s Minas Gerais

Perpetual Resources (ASX: PEC) has agreed to acquire a low-cost option from Mineracao Serra Do Sao Domingos for rare earth elements (REE), niobium and scandium mineral rights at the Raptor project in Brazil.

The agreement allows Perpetual to undertake due diligence for an initial 90-day period upon payment of approximately $45,000, extendable for the same period at the same cost.

The option comprises four licence areas covering 3.8 square kilometers in the prolific Tier 1 Caldeira rare earth complex in the state of Minas Gerais.

All licences are situated near established infrastructure, water access and existing mining activities.

Raptor is reported to have some active mining rights and exhibits near-surface bauxite mining operations, which are not located within any environmental protection zones.

Due diligence

Perpetual’s due diligence commitments will include detailed planning for an initial reconnaissance program later this month.

This will be followed by a more comprehensive drilling and sampling program to validate the presence of REE or other valuable mineral occurrences on the tenements.

Should the option be exercised, Perpetual has stated it would carry out an aggressive exploration campaign at the project.

If Perpetual converts the option, it has agreed to issue Sao Domingos a total of 20 million performance rights over three tranches.

Raptor location

Raptor is located near the Caldeira ionic clay REE project owned by Meteoric Resources (ASX: MEI), which hosts a mineral resource estimate of 545 million tonnes at 2,561 parts per million total rare earth oxides, comprising 24.1% magnet rare earth oxides.

The agreement will add to Perpetual’s existing lithium and rare earths footprint in a jurisdiction that is experiencing growing interest from explorers chasing exposure to critical minerals.

Highly strategic move

Perpetual executive chair Julian Babarczy said the transaction represented a “highly strategic move” for the company.

“This agreement represents a further extension of our considerable exploration activities in Brazil’s prolific Minas Gerais region,” he said.

“We have secured—at an extremely low cost—the mineral rights to a prospective tenement package in an area which is highly sought after for REE exploration.”

“The success of Meteoric’s nearby Caldeira project demonstrates the geological prospectivity of the area, and we look forward to commencing due diligence immediately.”