Brazilian Rare Earths (OTCQX:BRELY) plans to demerge its 100%-owned Amargosa Bauxite–Gallium Project into a new ASX-listed company, Alurion Resources (ALU). The deal aims to create a dedicated bauxite and critical minerals developer while BRE focuses on rare earths.
Eligible BRE shareholders are expected to receive 0.5607 Alurion shares per BRE share via an in-specie distribution, with Alurion targeting an IPO to raise A$30–50 million. BRE expects to retain a 17–18% strategic stake, subject to final IPO size and allocations.
Amargosa hosts a 568 Mt JORC resource, including 98 Mt of direct-ship bauxite. A Scoping Study at US$71/dmt bauxite price indicates an after-tax NPV8 of US$630m, 82% IRR, 1.2-year payback and US$119m initial capex.
Brazilian Rare Earths (ASX: BRE / OTCQX: BRELY) reported expanded Monte Alto and Sulista district results, metallurgical scale-up, and a trial mining licence. Key metrics: drill intercepts up to 35.3% TREO, NdPr up to 59,645 ppm, ore-sorting single-pass upgrade to 27% TREO, and a 97% extraction test at 150°C. Monte Alto drilling totals 32,372 metres; JORC MRE and scoping study targeted mid-2026. ANM issued a Trial Mining Licence for up to 2,000 tpa, supporting pilot plant commissioning at Camaçari in Q3 2026.
Brazilian Rare Earths (ASX:BRE, OTCQX:BRELY) has secured a Trial Mining Licence from Brazil’s ANM for the Monte Alto project in Bahia, authorising extraction of up to 2,000 tonnes per annum of product. Trial mining will supply bulk shipments for offtakes and metallurgical testing and feed BRE’s Camaçari pilot plant, on track to commence operations in Q3 2026. BRE expects to submit an Economic Development Plan to ANM in Q2 2026, the next federal step toward a full mining concession. The licence supports BRE’s low-impact, quarry-scale, dry-processing development model.