Canadian Origen Resources, a mining company listed on the Ontario and Frankfurt stock exchanges, signed a letter of intent to acquire a rare earths project in Piauí.
The concession package, located in two blocks in the interior of the state, totals 3,978 hectares and includes preemptive rights over five other exploratory areas, which could open space for the formation of a rare earth mining district in the Northeast.
The information was disclosed by the company in a material fact to the market.
The samples already analyzed indicated levels of up to 1.61% of total rare earth oxides, a result considered high for surface samples and sufficient to confirm the mineral potential of the area.
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These inputs are essential for the production of permanent magnets, batteries and high-tech equipment.
The preliminary study also evaluates the possibility of the occurrence of an ionic adsorption clay deposit, a geological model known for its high concentration of heavy rare earths, especially explored in China.
These deposits, called IACD (Ion Adsorption Clay Deposits), are rare and of great strategic value.
Unlike large rock masses, they allow the extraction of minerals in a less aggressive way and with less environmental impact.
Steps and conditions
Origen will have 150 days of exclusivity to conduct the due diligence phase, a period of technical and legal analysis on the potential and risks of the project.
If the results are positive, the company will assume a 90% stake by paying US$50,000 to the seller, issuing 2 million shares and investing a minimum of US$1 million in exploration over the following two years.
At the end of this period, the seller, whose name was not disclosed, will receive 15% of the company’s shares and a seat on the board of directors.
Government knows the potential of the state
Piauí is among the Brazilian states with the greatest potential for the occurrence of rare earths in the subsoil.
Given the growth of international interest and the low level of geological knowledge about the national territory, the director-president of the Geological Survey of Brazil, Sabrina Góis, met with governor Rafael Fonteles to discuss partnerships and projects aimed at expanding mineral mapping in the state.
The meeting took place in Brasília, last Thursday (6).
During the meeting, Fonteles expressed interest in expanding the survey of Piauí’s mineral potential and stated that he wanted to count on the technical support of the SGB in the process.
. In other words, the country is unaware of more than 70% of the potential of the national subsoil.
