Brazilian Critical Minerals Raises $2M To Advance Ema Project

Brazilian Critical Minerals Ltd (ASX: BCM) has secured firm commitments to raise $2 million via a placement of shares at $0.023 each.

The placement was strongly supported by key existing shareholders and the board of directors.

This includes BCM’s largest shareholder Drake Special Situations LLC, which has agreed to subscribe for shares worth $407,000.

Rare earth deposits in Brazil

BCM recently reported an initial resource estimate at its Ema Project in Brazil, ranking it as one of the world’s largest ionic clay rare earth deposits.

The JORC 2012 Inferred Mineral Resource Estimate is 1.02Bt at 793ppm TREO, including a higher-grade portion of 331Mt at 977ppm TREO.

Read: Brazilian Critical Minerals Inks Massive Maiden Resource of 1B Tonnes For Ema Rare Earth Project

The resulting resource is some effort as it was defined in less than 1 year.

With only 46% of the total area drilled, it appears highly likely that the tonnage will significantly increase with more drilling.

Key advantages over peers

BCM Managing Director Andrew Reid said: “Over the course of the last 2 months BCM has announced a rare earth Mineral Resource of >1Bt along with the worlds highest recoveries of magnet rare earth elements (MREO) averaging 68%.

 “The Ema project has numerous key advantages over its peers being a high basket of MREO at 31%, extremely high recoveries, can leach at pH4 and higher and requires very low dosage rates of ammonium sulphate.”

Reid said the money raised will now allow the company to rapidly commence key work streams.

This is expected to culminate in the release of an economic scoping study which will help the company evaluate the project’s next steps.

Demand on the rise

Rare earth elements play a crucial role as inputs in various cutting-edge applications, such as battery alloys, catalysts, ceramics, and metal alloys.

The demand for rare earths is rising, particularly for producing permanent magnets used in electric vehicles and wind turbines.

It is worth noting that Brazil has the third-largest rare earth reserves in the world.

 

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