Canamera Energy Metals Corp. announced it has signed a non-binding letter of intent to acquire an option to earn a 100% interest in the Patos ionic clay rare earth element project in Minas Gerais, Brazil. The project covers approximately 15,979 hectares and represents a strategic expansion of the company's focus on rare earth and critical metals exploration across the Americas.
The agreement outlines a two-stage process beginning with a C$20,000 due diligence auger drill program of up to 10 holes designed to confirm ionic clay rare earth element mineralization. This initial phase allows the company to verify the geological potential before committing to the full option agreement. If the option is exercised, the total consideration would amount to C$228,000 in cash and C$307,800 in common shares.
The transaction includes a 2% net smelter return royalty in favor of the vendor, with Canamera retaining a buyback right to reduce the royalty to 1% for C$228,000. This structure provides flexibility in managing long-term project economics while securing access to a potentially significant rare earth resource.
This development is significant as rare earth elements are critical components in numerous modern technologies, including electric vehicles, wind turbines, consumer electronics, and defense systems. With global demand for these materials increasing and supply chains facing geopolitical pressures, new discoveries in stable jurisdictions like Brazil could help diversify the global rare earth supply. The Patos project utilizes the ionic clay deposit model, which has become increasingly important in rare earth exploration due to its potential for lower-cost extraction methods compared to traditional hard rock mining.
Canamera Energy Metals Corp. is building a portfolio of district-scale opportunities across the Americas, with assets including the Mantle project in British Columbia, the Garrow rare earth elements project in Northern Ontario, the Schryburt Lake rare earth and niobium project in Ontario, the Iron Hills critical and rare earth project in Colorado, and the Turvolândia and São Sepé rare earth element projects in Brazil. The company targets underexplored regions with strong geological signatures and supportive jurisdictions, applying comprehensive datasets to generate high-conviction exploration targets.
The latest news and updates relating to the company are available in its newsroom at https://ibn.fm/EMETF. The full press release regarding the Patos project agreement can be viewed at https://ibn.fm/MXF5G. This announcement was disseminated through Rocks & Stocks, a specialized communications platform delivering insights into the mining industry that is part of the Dynamic Brand Portfolio at IBN, which provides various corporate communications solutions including wire distribution, editorial syndication, and social media distribution.
For investors and industry observers, this move represents Canamera's continued execution of its strategy to identify and develop rare earth resources in geopolitically stable regions. As nations worldwide seek to secure critical mineral supplies for their energy transitions and technological advancement, successful exploration and development of projects like Patos could contribute to more resilient supply chains. The Brazilian mining jurisdiction offers established infrastructure and mining regulations, potentially reducing development risks compared to more remote or politically unstable regions.
