Liberty Metals’ Shift to Brazil Raises Questions on Exploration and Funding

Strategic Shift to Brazil

Liberty Metals Limited (ASX, LIB), formerly known as Traka Resources Limited, has marked a decisive transformation in its corporate strategy during the September 2025 quarter. The company’s binding option to acquire three large-scale mineral projects in Brazil signals a bold entry into the critical minerals arena, focusing on rutile, ilmenite, zircon, and monazite-hosted rare earth elements. This move positions Liberty Metals within a Tier 1 jurisdiction, enhancing its global exploration footprint.

The Brazilian portfolio includes the Paraiba Hard Rock Rutile Project, Rio Grande Heavy Mineral Sands Project, and Alcobaca Heavy Mineral Sands and Rare Earths Project. Each offers distinct geological advantages, Paraiba’s high-grade hard-rock rutile with exceptional purity, Rio Grande’s extensive coastal placer deposits mirroring a world-class resource, and Alcobaca’s promising monazite deposits critical for electric vehicle and renewable energy technologies.

Capital Raising and Corporate Restructuring

Supporting this strategic pivot, Liberty Metals successfully completed a $2.5 million placement to sophisticated and professional investors. The capital raise was executed in two tranches, providing the company with the necessary funds to advance exploration and development activities in Brazil. Alongside financial strengthening, Liberty Metals undertook a significant board restructuring. The appointments of Nicholas Katris as Non-Executive Chair and Timothy Morrison as Non-Executive Director bring seasoned expertise in global resource sectors, underscoring the company’s commitment to international growth and critical minerals specialization.

In tandem with these changes, the company rebranded itself, officially changing its name from Traka Resources Limited to Liberty Metals Limited in mid-October 2025. This rebranding effort, including a proposed 20, 1 share consolidation, reflects the company’s new strategic focus and market positioning.

Divestment of Legacy Assets

Liberty Metals has also streamlined its asset base by divesting non-core Australian gold projects. The sale of the Mt Cattlin Gold Project remains subject to due diligence but is progressing, while the company has withdrawn from the Didi Gold Project following a termination notice from its joint venture partner. These moves complete the company’s transition away from gold towards critical minerals, aligning its portfolio with future-facing commodities essential for clean energy technologies.

Outlook and Next Steps

Looking ahead, Liberty Metals plans systematic and cost-efficient exploration programs across its Brazilian projects, aiming to rapidly define initial resources. The company retains interests in other projects, including the Gorge Creek Project in Queensland and the Cranbrook Project in Western Australia, both prospective for rare earth elements and base metals. With a cash position of approximately $269,000 at quarter’s end and recent capital injections, Liberty Metals is adequately funded to pursue its near-term objectives.

While exploration results from the new Brazilian assets are eagerly awaited, the company’s strategic repositioning and strengthened leadership team set the stage for potential growth in the critical minerals sector, a market segment gaining increasing global importance amid the energy transition.