ASX-listed Australian Mines (AUZ) has acquired two highly prospective exploration projects in Brazil for $1.1-million – the Jequie rare earths and Resende lithium projects.
The projects are located in the states of Bahia and Minas Gerais, respectively.
Coupled with AUZ’s Sconi nickel, cobalt and scandium project, the company now offers its investors exposure to a diversified portfolio of battery metals.
AUZ aims to start work on the new assets as soon as possible, with the help of the company’s local Brazilian vendor.
CEO Andrew Nesbitt confirms that the company will soon be renamed to EcoMetal Resources to reflect its increased exposure to battery metals, upon shareholder approval.
The Jequie project comprises 45 mineral rights claims covering 82 568 ha and is located next to Brazilian Rare Earth, which has identified 21-million tons of reserves.
The Resende project with its eight mineral rights claims spanning 13 314 ha is located 17 km away from AMG Brazil’s Mibra mine, which produces 130 000 t/y of lithium concentrate.
Having completed an equity placement with strong demand for $2.5-million, the company is well funded to expedite exploration in Brazil.
The acquisition of the new projects comprises a $150 000 cash consideration and 90-million of AUZ shares issued at a price of $0.011 apiece and should become effective by the end of February next year.