Alvo Minerals (ASX:ALV) has signed a binding agreement to earn up to 85% of a 656-hectare tenement near its Bluebush Heavy Rare Earth Element (HREE) Project in Brazil.
The ground lies south of the Boa Vista prospects on the northern Serra Dourada granite. Alvo plans to integrate it into Bluebush’s exploration program, including auger drilling, geological mapping, geophysical surveys, and preliminary rare earth extraction tests.
The Serra Dourada granite also hosts Serra Verde’s producing Pela Ema ionic adsorption clay rare earths mine. USA Rare Earth (NASDAQ:USAR) has agreed to acquire Serra Verde in a transaction valued at approximately US$2.8 billion ($3.9 billion).
Managing Director Rob Smakman says the agreement builds on the company’s recent EZX Mineração Construção e Incorporação area addition.
“This is another important addition to our growing HREE project on the northern half of Serra Dourada and when coupled with the recent EZX area addition, we have effectively doubled our footprint of prospective granite under Alvo,” Smakman says.
He says field activities could begin as early as next week, with the new tenement appearing to share Boa Vista’s host geology, weathering profile, and landform characteristics.
Through its Brazilian subsidiary Lanta Recursos Minerais, Alvo will pay US$50,000 in three instalments. A US$20,000 payment has been made, with US$15,000 due on each of 10 March and 8 October 2027.
Ownership will be earned through three stages tied to filings with Brazil’s National Mining Agency.
Alvo notes basic exploration and submission of a partial positive exploration report would give Lanta 55% of a newly formed project company. Further exploration and a final positive exploration report would lift that interest to 75%, followed by a Prefeasibility Study-level report to reach 85%.
The company notes it will fund all exploration and title costs through the third stage; no minimum expenditure commitments apply.
Alvo is an Australian explorer advancing the Palma Copper-Zinc Project and the Bluebush and Iporá rare earths projects in Brazil.
Write to France Pinzon at Mining.com.au
Images: Alvo Minerals
