Brazilian Critical Minerals (ASX:BCM) has secured firm commitments for a $10 million institutional placement to advance its Ema Rare Earths Project towards a final investment decision.
The placement comprises approximately 190.1 million new shares priced at $0.053 each, representing a 3.6% discount to the last traded price of $0.055.
BCM reports ‘strong’ demand from new and existing institutional investors for the two-tranche raising.
Managing Director Andrew Reid says the placement follows the recent release of the Ema Bankable Feasibility Study (BFS), which confirmed the project as economically ‘robust’ with low upfront capital costs.
“The strong demand received from high-quality institutional investors for this placement is a clear endorsement of the quality of the Ema Project, which the BFS confirmed as the lowest capital cost rare earth project in the western world with the potential to emerge as an important source of Western world rare earths supply,” Reid says.
The placement will provide BCM with a pro forma cash balance of approximately $14 million before costs, based on its current unaudited cash position of $4 million.
Proceeds will fund pre-development activities including front-end engineering and design, production well drilling for field one, and procurement of early-stage project equipment.
The company will also earmark funds for working capital and to progress permitting, offtake discussions, and strategic partnerships.
The raising comprises two tranches, with around $7.4 million raised in tranche one through approximately 139.6 million shares using existing placement capacity.
A conditional second tranche will raise an estimated $2.7 million through approximately 50.4 million shares, subject to shareholder approval at an extraordinary general meeting expected to be held in early to mid-August.
Settlement of the first tranche is scheduled for 13 July 2026, with allotment occurring on 14 July.
Directors have committed approximately $73,000 to the placement, subject to shareholder approval.
Barrenjoey Markets and Wallabi Group acted as joint lead managers and bookrunners for the non-underwritten placement.
The Ema Project hosts an indicated and inferred mineral resource of 1.07 million tonnes at 732 parts per million total rare earth oxides.
The company’s recently released BFS is based on in-situ recovery and production of a mixed rare earth carbonate product with an assumed life-of-mine recovery of 55%.
Brazilian Critical Minerals is a rare earths explorer and developer focused on its fully owned Ema Project, located in the Apuí region of Amazonas State, Brazil.
Write to Paula Fabe at Mining.com.au
Images: Brazilian Critical Minerals
