PVW Resources (ASX:PVW) has signed an agreement to acquire Brazil-registered Scanty Mineraco, which holds a “highly prospective” portfolio of rare earth element projects across four areas in Brazil.
The portfolio contains 11 projects, covering 952km2, that have been identified and selected with the support of independent Brazilian geological consultants. The project areas include the Poços De Caldas Alkaline Complex and the Bahia Rare Earth Province.
Under the binding agreement, PVW Resources has paid Scanty $50,000 as an exclusivity fee, and will also issue 40 million shares and 120 million performance rights, as well as pay $600,000 in reimbursement of expenses incurred to date in respect of the projects.
Subject to satisfying vesting conditions, PVW will also pay $1.5 million to Scanty.
Once completed, Scanty will enter into a royalty deed with the Brazil-domiciled Scanty vendors for a 1.5% net smelter return royalty.
The acquisition is subject to PVW satisfying due diligence investigations and obtaining all necessary shareholder approvals.
Non-executive Chairman George Bauk says the company sees these projects as an opportunity to grow its presence in the evolving critical minerals landscape globally.
“The acquisition of strategically located rare earth element projects in Brazil allows us to gain a foothold in a highly prospective and stable region which has recently established itself at the forefront of the rare earth industry globally,” Bauk says.
Scanty has highlighted the Capão Bonito and Sguario projects as first priority projects within the package. Initial work completed to date includes portable x-ray fluorescence field testing, which indicates anomalous rare earths at surface within saprolite granite outcrops.
Historical exploration results will be reported once due diligence and validation of results are completed, which is expected to happen by the end of this calendar year.
PVW has also been granted to enter into a trading halt, pending the release of an announcement regarding a transaction for the acquisition of a rare earths project and associated funding via a placement.
The company will remain in a trading halt until the announcement is released, or the opening of trading on 30 July 2024.
PVW Resources is a diversified resources company focused on its project portfolio that spans tier one mining jurisdictions in Western Australia’s Tanami, Gascoyne, Kalgoorlie, and Leonora areas.
Write to Aaliyah Rogan at Mining.com.au
Images: PVW Resources
