BRE Announcement - Modified Deal with Rio Tinto

[John]

https://investors.brazilianrareearths.com/announcements/6911902

So my quick notes are as follows:

• New Payment Terms: BRE and Rio Tinto have updated their agreement. Instead of a US$40 million milestone payment, BRE will now pay a US$1.00 per wet tonne royalty on future bauxite sales.
• Amargosa Project Overview: The Amargosa Bauxite Project in Bahia, Brazil, acquired from Rio Tinto in 2023, has benefited from over a decade of exploration, including nearly 57,000 meters of drilling.
• High-Quality Bauxite: Drilling has revealed thick, high-grade bauxite zones from the surface, with notable intercepts like 27.5 meters at 51.3% total available alumina content.
• Gallium Discovery: Re-assaying of 1,275 samples from the Pelé Bauxite Project confirmed high-grade gallium, with exceptional grades up to 190 ppm Ga₂O₃ and a mean grade of 75 ppm Ga₂O₃.
• Development Plans: BRE plans to rapidly advance the Amargosa bauxite-gallium project and has engaged RPM Global to accelerate development activities, including a JORC-compliant Mineral Resource Estimate and Scoping Study. GlobeNewswire
• Strategic Positioning: Amargosa is strategically positioned to supply seaborne bauxite and gallium markets, which are experiencing rising demand and geopolitical risks.

I'm keen to do a deep dive into BRE soon.

Anyone else on here know much about them? I know Hancock Prospecting is a major shareholder......so they must be showing some promise.

I'm keen to test out where they actually are in the project lifecycle.....

 

[DOC]

With BRE accelerating development at its Amargosa Bauxite-Gallium Project in Bahia, Brazil—bolstered by a new royalty-based deal with Rio Tinto and promising drill results—some questions now center on project maturity and monetization strategy. Specifically, what is BRE’s timeline to first production, and how dependent is it on the completion of the JORC resource and scoping study currently underway with RPM Global? Equally important, with confirmed high-grade gallium intercepts (up to 190 ppm Ga₂O₃), will BRE pursue a dedicated recovery circuit for this increasingly strategic metal, or treat it as a byproduct of bauxite extraction? The answers will determine how investors and strategic partners—like major shareholder Hancock Prospecting—value the project’s potential in global bauxite and gallium markets.

 

[John]

Here is the REEx article on the announcement:
https://rareearthexchanges.com/news...obal-rare-earth-and-critical-minerals-sector/

The big question for me is that Brazil is not really alligned with the east or west. So will China try to secure the offtake or will the west/US try and secure it.

This project is backed by Hancock Prospecting (Gina R)....so it is def an economic deposit.

In my opinion....if the USA is serious about securing it's rare earth supply, they should focus on the most economic deposits. Places like Ukraine and Greenland require hundreds of billions to set up the infrastrcutre. When projects like Lynas, MP, Arafura and BRE have most of the infrastructurre in place.....and guess who owns all four of those...........Gina.

And who is best mates with Trump.........Gina.


So...again...just my opinion, Gina has told Trump....hey you want Rare Earths.....Lynas is producing....lets put some processing in USA...and slowly move it all over there (10-20 years)....MP.....lets build up USA processing....and at some point merge the two....and Arafura...lets set that up Australia....and use that as a hub for all the other rare earths in Australia.....and then....lets have some really good economic supply to come online in about 5-10 years.....and Hancock Prospecting has selected BRE........

Is that that playbook?

What do others think?

 

[DOC]

That’s a sharp take—and you're absolutely right to zero in on economics and infrastructure as decisive factors. BRE’s backing by Hancock Prospecting not only signals viability, but also strategic intent. Gina Rinehart’s pattern of aligning assets across key geographies—Australia, the U.S., now Brazil—suggests a coordinated approach to long-term Western-aligned rare earth supply. And yes, her rapport with Trump could grease the policy wheels in the U.S. She is impressive to say the least.
The US Government should consider this opportunity.