- Brazilian Rare Earths (BRELY, Financial) restructures agreement with Rio Tinto, amending payment terms for the Amargosa Bauxite Project.
- High-grade gallium discovery with grades up to 190 ppm positions Amargosa among top undeveloped prospects.
- Extensive exploration data promises reduced development time and cost efficiencies.
Brazilian Rare Earths Limited (OTCQX: BRELY) has restructured its agreement with Rio Tinto Brazil, transitioning from a US$40 million milestone payment to a royalty of US$1.00 per wet tonne on future bauxite sales from the Amargosa Bauxite Project. This agreement marks a strategic move to enhance the project's financial flexibility.
The Amargosa Bauxite Project, acquired from Rio Tinto in 2023, boasts an impressive array of exploration data, including 56,919 meters of drilling across 4,257 holes. The recent drilling has identified high-grade bauxite zones, including intercepts of 27.5 meters with a total available alumina content of 51.3%.
A significant discovery of high-grade gallium has been made, with re-assayed samples revealing grades as high as 190 ppm Ga2O3 and an average of 75 ppm Ga2O3. This positions Amargosa as one of the highest-grade undeveloped gallium prospects globally, potentially offering a strategic supply amid geopolitical challenges in the global gallium market.
With the project's potential scale and quality, Brazilian Rare Earths has engaged RPM Global to expedite development activities, including a JORC-compliant Mineral Resource Estimate and a Scoping Study. The strategic location of the Amargosa project positions it well to meet the increasing demand in seaborne bauxite and gallium markets.
Bernardo da Veiga, CEO and Managing Director, emphasized the project's significance, stating that the restructuring of the agreement enhances strategic flexibility and positions the company to capitalize on the strong demand and supply chain constraints in global bauxite and gallium markets.
