Si6 Metals (ASX:SI6) has closed the previously announced deal with privately held Foxfire Metals for a 50% interest in a portfolio of exploration licences in Brazil.
The Brazilian assets include 10 exploration licences encompassing 17,000 hectares in prime Brazilian exploration locations hosting ‘world-class’ rare earth element (REE) ionic adsorption clay deposits and ‘significant’ lithium spodumene resources.
Si6, which has a market capitalisation of $8.97 million, expects to kick off the first phase of exploration this month at the Caldera REE Project in South Minas Gerais.
Si6 Metals Managing Director Jim Malone says the Caldera project lies close to other ‘significant’ REE discoveries by Meteoric Resources (ASX:MEI) and Viridis Mining and Minerals (ASX:VMM).
“This program will be closely followed by a program in the lithium valley which is host to Latin Resources (ASX:LRS) and Sigma Lithium Corporation (NASDAQ:SGML), to name a few success stories.
The lithium valley program will take place close to S-Type G4 supersuite granites that are typically known to host lithium in spodumene-bearing pegmatites.”
As part of the acquisition, Si6 acquired all of the shares in privately held Brazilian Ventures, which held a 50% interest in the licences with Foxfire.
Si6 also issued 209 million fully paid ordinary shares and 209 million options at $0.01 to Foxfire Metals on or before 30 June 2025, with a piggyback option to be issued for each option exercised at $0.02 on or before 30 June 2027.
With the acquisition complete, representatives of Brazilian Ventures and Foxfire Metals will hold an inaugural meeting of the joint venture operation committee to approve an initial budget and exploration program.
Si6 Metals is a diversified critical minerals explorer with a portfolio of assets in Botswana, Brazil, and Western Australia.
As of 30 December 2023, the company had $665,000 cash and cash equivalents at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: Si6 Metals
