Liberty Metals’ Brazil Entry Faces Due Diligence and Approval Challenges

Strategic Entry Into Brazil’s Critical Minerals Landscape

Liberty Metals Limited (ASX – LIB) has taken a decisive step to broaden its footprint in the critical minerals sector by entering into a binding option agreement to acquire three substantial projects in Brazil. These include the Paraiba Hard Rock Rutile Project, the Rio Grande Heavy Mineral Sands (HMS) Project, and the Alcobaca Heavy Mineral Sands & Rare Earth Elements (REE) Project. The acquisition marks Liberty’s first major foray into a globally recognised Tier 1 mining jurisdiction, known for its stable regulatory environment and rich mineral endowment.

High-Grade Rutile at Paraiba – A Unique Hard-Rock Opportunity

The Paraiba Project stands out as a rare hard-rock rutile deposit, distinct from the more common heavy mineral sands. Covering 120 square kilometres in the state of Paraíba, initial laboratory assays have revealed exceptionally high rutile purity, with titanium dioxide (TiO₂) grades surpassing 90%, peaking at 94.7%. This high-grade rutile is hosted within metamorphic rocks of the Borborema geological province, a region geologically analogous to Cameroon’s emerging rutile province. Such a setting suggests significant potential for premium titanium feedstock production, a critical input for aerospace, defence, and green energy industries.

Rio Grande – Leveraging Proximity to a World-Class Heavy Mineral Sands Resource

The Rio Grande Project, spanning 234 square kilometres in southern Brazil’s Rio Grande do Sul state, offers a compelling exploration opportunity. Situated adjacent to the South Atlantic Project, home to a JORC-compliant mineral resource of 771 million tonnes at 3.0% total heavy minerals, Rio Grande benefits from a proven geological model. The deposit’s near-surface, simple geology lends itself to low-cost mining methods, and the nearby South Atlantic Project’s progress towards a pre-feasibility study provides a valuable blueprint for development.

Alcobaca – Rare Earths and Heavy Minerals in a Validated District

The Alcobaca Project, covering 55 square kilometres in Bahia state, is strategically positioned next to Energy Fuels’ Bahia Project, a US critical minerals producer that recently invested US$27.5 million in the area. Alcobaca’s potential extends beyond titanium and zircon to monazite-hosted rare earth elements, including neodymium and dysprosium, key components in permanent magnets for electric vehicles and wind turbines. This adjacency offers a degree of de-risking and underscores the district’s emerging importance in the global rare earth supply chain.

A Multi-Asset Strategy Aligned With Global Critical Minerals Demand

Liberty Metals’ acquisition strategy reflects a diversified approach, balancing a high-grade, hard-rock rutile project with large-scale heavy mineral sands and a rare earths-focused asset. This portfolio aligns with increasing global demand for critical minerals, driven by the energy transition and geopolitical imperatives to secure transparent supply chains. The company plans systematic exploration programs, including geological mapping, trenching, geophysical surveys, and drilling campaigns, to rapidly advance these projects towards resource definition.

Transaction and Next Steps

The acquisition is structured as an exclusive option agreement, subject to due diligence, shareholder approval, and regulatory clearances. Upon exercise, Liberty Metals will issue shares and attaching options as consideration. The company is poised to commence exploration activities promptly, aiming to unlock value from these strategically significant Brazilian assets.