Brazilian Rare Earths & Alurion Resources Demerger – Australian IPO Offer Update

Rhea-AI Summary

Brazilian Rare Earths (ASX: BRE / OTCQX: BRELY) announced that its Australian subsidiary Alurion Resources has accepted applications for 47,619,048 new fully paid ordinary shares at A$1.05 per share under its Australian initial public offering, for gross proceeds of about A$50 million. According to Brazilian Rare Earths, the shares are expected to list on the ASX under the code “ALU”.

Brazilian Rare Earths stated that Alurion intends to use IPO proceeds to fund continued development of the Amargosa Bauxite-Gallium Project, which was previously demerged into Alurion following approval by Brazilian Rare Earths shareholders, with 99.94% of votes cast in favour at the 10 July 2026 general meeting. Admission of Alurion to the ASX official list is expected on 30 July 2026, with trading on a normal settlement basis expected to commence on 3 August 2026, subject to ASX approval and satisfaction of admission conditions. The announcement also notes that the securities have not been registered under the U.S. Securities Act and are not being offered in the United States.

Positive

• A$50 million gross proceeds accepted in Alurion Australian IPO offer
• High shareholder support for Amargosa demerger with 99.94% of votes in favour
• IPO funds earmarked to advance Alurion's Amargosa Bauxite-Gallium Project development
• Expected ASX listing for Alurion with trading targeted from 3 August 2026

Negative

• Alurion ASX admission and trading start remain subject to ASX approval and conditions

News Explained

Alurion has accepted applications for A$50 million of new shares, but its IPO has not yet listed or begun trading; if completed, the added shares will increase Alurion’s share count and reduce existing holders’ percentage ownership.

Key Figures

New shares: 47,619,048 shares Offer price: A$1.05 per share Gross proceeds: approximately A$50 million +3 more

New shares

47,619,048 shares

Australian IPO Offer

Offer price

A$1.05 per share

Australian IPO Offer

Gross proceeds

approximately A$50 million

Australian IPO Offer

Demerger approval

99.94% of votes

BRE shareholder General Meeting held on July 10, 2026

ASX admission

July 30, 2026

Expected admission to the Official List of the ASX

Trading commencement

August 3, 2026

Expected normal settlement trading under ASX code ALU

Historical Context

1 past event · Latest: May 18

1 event

1. May 18

   Project demerger

   24h Move

   +0.6%

   Plan to demerge Amargosa project into Alurion and target A$30–50 million IPO

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

initial public offering, demerger, fully paid ordinary shares, normal settlement basis

4 terms

initial public offering financial

"under its Australian initial public offering (Australian IPO Offer)"

An initial public offering (IPO) is when a private company first sells its shares to the public and becomes a stock-listed company. It matters because it allows the company to raise money from a wide range of investors, helping it grow, while giving early shareholders a way to sell some of their ownership.

demerger financial

"approval of the demerger of the Amargosa Bauxite-Gallium Project"

A demerger is a corporate action where one company separates part of its business into a new, independent company, often by distributing shares of the new entity to existing shareholders. It matters to investors because it changes ownership, can alter how businesses are valued and reported, and may affect future cash flows and risk profiles—like splitting a household into two budgets so each can be managed and judged on its own performance.

fully paid ordinary shares financial

"new fully paid ordinary shares at an offer price"

Ordinary shares are the standard class of company stock that give owners rights such as voting and entitlement to dividends; “fully paid” means the buyer has already paid the full purchase price and owes no further money to the company. Think of it like owning a car outright rather than making payments: the holder has the full ownership rights and cannot be asked to pay more if the company needs cash. This matters to investors because it clarifies legal rights, dividend eligibility, and that there is no future liability on those shares.

normal settlement basis technical

"with trading on a normal settlement basis expected to commence"

Normal settlement basis means that a security transaction is completed according to the market’s standard timing and procedures for exchanging cash and shares (for example, the common T+2 or other routine settlement cycle). It matters to investors because it determines when ownership, voting rights, dividends, and payment obligations officially transfer, and it affects cash management and exposure to settlement risk in everyday trading.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Not an offer of securities.

This announcement does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in the United States or any other jurisdiction. The securities referred to in this announcement have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States absent registration under the Securities Act or an applicable exemption from the registration requirements of the Securities Act and applicable US state securities laws.

SYDNEY, July 22, 2026 (GLOBE NEWSWIRE) -- Brazilian Rare Earths Limited (ASX: BRE / OTCQX: BRELY) (‘BRE’) announces that its subsidiary Alurion Resources Limited, an Australian company (Alurion), has accepted applications for 47,619,048 new fully paid ordinary shares at an offer price of A$1.05 per share, representing gross proceeds of approximately A$50 million, under its Australian initial public offering (Australian IPO Offer) and to be listed on the Australian Securities Exchange.

Proceeds from the Australian IPO Offer will be used to fund the continued development of Alurion's Amargosa Bauxite-Gallium Project.

The outcome follows approval of the demerger of the Amargosa Bauxite-Gallium Project into Alurion by BRE shareholders, with 99.94% of votes cast in favour at the General Meeting held on 10 July 2026.

Admission of Alurion to the Official List of the ASX is expected on 30 July 2026, with trading on a normal settlement basis expected to commence on 3 August 2026 under the ASX code “ALU”, subject to ASX approval and satisfaction of admission conditions.

Contacts

Bernardo Da Veiga, Managing Director and CEO

investors@brazilianrareearths.com
www.brazilianrareearths.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much capital is Alurion Resources raising in its Australian IPO linked to BRELY?

Alurion Resources has accepted applications for about A$50 million in gross proceeds. According to Brazilian Rare Earths, this comes from 47,619,048 new fully paid ordinary shares at an offer price of A$1.05 per share under its Australian IPO offer.

What are the key terms of the Alurion Resources IPO associated with Brazilian Rare Earths (BRELY)?

Alurion’s IPO involves 47,619,048 new fully paid ordinary shares at A$1.05 each. According to Brazilian Rare Earths, the offer represents gross proceeds of approximately A$50 million, with an intended listing on the ASX under the ticker code “ALU”.

When is Alurion Resources expected to list and start trading on the ASX (code ALU)?

Alurion is expected to be admitted to the ASX official list on 30 July 2026. According to Brazilian Rare Earths, normal settlement trading is expected to commence on 3 August 2026, subject to ASX approval and satisfaction of admission conditions.

How was the demerger of the Amargosa Bauxite-Gallium Project into Alurion approved by BRELY shareholders?

The demerger received very strong support from Brazilian Rare Earths shareholders, with 99.94% of votes cast in favour. According to Brazilian Rare Earths, this approval occurred at the general meeting held on 10 July 2026, enabling the Alurion spin-out.

How will Alurion Resources use the A$50 million raised from the IPO tied to Brazilian Rare Earths?

Alurion plans to use the IPO proceeds to fund ongoing development of the Amargosa Bauxite-Gallium Project. According to Brazilian Rare Earths, directing capital to this project is the stated primary use of funds from the Australian IPO offer.

Can U.S. investors participate directly in the Alurion Resources IPO related to BRELY?

The Alurion IPO is not being offered in the United States. According to Brazilian Rare Earths, the securities have not been and will not be registered under the U.S. Securities Act, and cannot be offered or sold in the U.S. without an applicable exemption.