In December 2022, Meteoric Resources entered into a binding agreement to acquire the Caldeira Project, a Tier 1 Ionic Clay Rare Earth Element (REE) project in the Minas Gerais State of Brazil.
The Caldeira Project comprises 30 licenses (21 Mining Licences and 9 Mining Licence Applications) and has previously had significant exploration conducted including 1,311 shallow auger drill holes for 13,037m. Drilling across six licences returned ultra-high-grade Total Rare Earth Oxide (TREO) intersections all of which are reported from surface.
REE mineralisation commences from surface and remains completely open at depth with 85% of the 1,311 auger holes ending in grades above 1,000ppm TREO. No drilling has been conducted below 20m depth.
The TREO identified across the Caldeira Project represents an enriched HREO basket with strongly enriched Magnet REOs – Tb2O3, Dy2O3, Nd2O3 and Pr2O3 – averaging greater than 22% of TREO.
Project Geology
The Alkaline Intrusive Complex of Poços de Caldas represents one of the most important economic terrains in Brazil and hosts deposits of bauxite, clay, uranium, zirconium, REEs and leucite (used as a fertiliser). The Poços de Caldas Intrusive Complex covers an area of approximately 800km2, constituting the largest occurrence of alkaline rocks in South America. The main rock types found in the Poços de Caldas Complex are intrusive and volcanic alkaline rocks of the nepheline syenite system comprising phonolites and foidolites.
The Poços de Caldas area has a long and continuous history of clay mining for bricks and subsequently refractory clays along with a more recent history (from the 1950s) of mining activities focused on bauxite for aluminium and uranium by the Brazilian Nuclear Industry (INB – decommissioned).
Figure 1. Inset – Location of Caldeira Project – Detail Map Simplified regional geological map of the Poços de Caldas Intrusive complex highlighting licenses included in the Caldeira Project deal (Licence details are provided in Appendix 3). Licenses emphasised in callouts have had extensive auger drilling.
Acquisition Terms
Under the acquisition agreement, Meteoric will acquire the exclusive rights to explore for and develop all rare earths elements located on the 30 mining leases that comprise the Caldeira Project from Togni S/A Materiais Refratários on the following terms:
- Payment (completed) of US$200,000 for an exclusivity period to 6 April 2023, to allow Meteoric to complete due diligence on the Project;
- Subject to the satisfactory completion of due diligence and negotiation of formal binding transaction documents, payment of:
- Total cash consideration of US$20,000,000 comprised as follows:
- Initial cash payment of US$5 million on Completion; and
- Three further payments of US$5 million on the 12th, 24th and 36th month anniversaries of Completion; and
- A royalty payment of 4.75% on minerals extracted from the Project, with the purchase price of US$20,000,000 to be credited against initial payments under the royalty (so that there is a royalty holiday for the first US$20,000,000 of royalty payments otherwise due)
