Summit Minerals is set to expand its portfolio with the acquisition of the high-grade Mundo Novo niobium, rare earth element and phosphate carbonatite project in central Brazil.
The company has signed a binding letter of intent for the acquisition, which is pending shareholder approval and due diligence.
The acquisition includes two National Mining Agency properties covering an area of 17.2 km², and Summit Minerals Brasil Mineração, a wholly owned subsidiary, will facilitate the purchase from Neofertil and E2 Minerals.
The financial terms of the agreement include a series of cash payments totaling A$5.17 million, with the first payment of A$2.2 million due upon execution of the definitive agreement.
Additional payments are structured over a five-year period and are linked to project milestones, such as the discovery of an initial mineral resource estimate and the preparation of a bankable feasibility study.
In addition, Summit will issue A$4 million worth of shares to the sellers in increments, the first of which will also coincide with the execution of the definitive agreement. The sellers retain the right to continue phosphate mining activities within the properties.
Summit will also provide sellers with a 2% net smelter return royalty on the project.
Summit CEO Gower said: “We are excited about the potential acquisition of the Mundo Novo Carbonatite project, a key investment in the niobium and rare earth elements sector. This investment is driven by strong long-term demand linked to the global transition to clean energy and advances in decarbonization technologies.
“Mundo Novo has demonstrated substantial potential for niobium, rare earth and phosphate mineralization, as demonstrated by previous drill results that revealed considerable intercept widths. “The geological potential of the project aligns perfectly with our strategy of developing high-quality projects in Brazil that supply critical metals for the electric vehicle market and other clean energy applications.”
In September 2024, Summit Minerals agreed to acquire a new property within the Borborema Pegmatitic province to expand its Equador Niobium and Tantalum project in northeastern Brazil.
“Summit intends to acquire Mundo Novo project in Brazil” was originally created and published by Mining Technology, a brand owned by GlobalData.
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