Summit Minerals, an Australian Securities Exchange (ASX)-listed battery mineral exploration company, has signed a binding letter of intent to acquire the Mundo Novo niobium- rare earth elements (REE)-phosphate carbonatite project in Brazil.
The project is being acquired from Neofertil Mineração and E2 Minerais e Fertilizantes.
The acquisition consideration includes a total cash payment of A$5.2m ($3.27m), with instalments spread across five years, and the issuance of Summit Minerals’ shares valued at A$5m ($3.15m). Additionally, the sellers will retain a 2% net smelter return royalty on the project’s future production.
Enriched with niobium, REE, and phosphate, the project is part of the Mundo Novo Alkaline Complex (MNAC) in Goiás State.
The outcropping carbonatite features a weathered cap containing pyrochlore, the primary niobium host mineral in carbonatites. Bastnaesite, another critical mineral typically associated with granitic and alkaline igneous rocks, contributes to the enrichment of REE.
Despite its confirmed mineralisation, the Mundo Novo deposit remains underexplored and under-drilled, presenting significant potential for further resource development.
Summit Minerals managing director Gower He said: “This investment is driven by strong long-term demand linked to the global clean energy transition and advancements in decarbonisation technologies.
“Mundo Novo has shown substantial potential for niobium, rare earth element, and phosphate mineralisation, as evidenced by past drilling results that revealed considerable intercept widths. The project’s geological potential aligns perfectly with our strategy to develop high-quality projects in Brazil that supply critical metals for the electric vehicle (EV) market and other clean energy applications.”
The MNAC concession spans 17.2km2, with the circular Mundo Novo intrusion located at its centre. It also forms part of the Goiás Alkaline Province, a region of Late Cretaceous alkaline magmatism along the northern edge of the Paraná Basin.
Summit Minerals plans to conduct extensive due diligence before seeking shareholder approval for the acquisition.
The acquisition is subject to Summit Minerals completing comprehensive financial, legal, and technical due diligence on the Mundo Novo project.
