Origen Expands Brazilian Rare Earth Portfolio to 35,540 Hectares with 90% Acquisition
Origen Resources agreed to acquire a 90% interest in two REE project areas in Brazil, raising its land portfolio to 35,540 hectares for $50,000 cash and 2 million shares. It also closed a $500,000 private placement of 10 million units at $0.05, each with warrants exercisable at $0.075.
1. Definitive Agreement and Land Expansion
Origen Resources signed a definitive agreement to acquire a 90% interest in two rare earth element project areas in Piauí state, Brazil, increasing its land position to 35,540 hectares and securing a right of first refusal over five additional concessions totalling 9,903 hectares.
2. Fieldwork and Sample Analysis
During due diligence, Origen staff collected 23 rock and 16 soil samples across 31 stations, employing portable XRF and radiometric spectrometry in the field and lithium metaborate fusion with ICP-OES/MS testing in the lab to confirm previously identified anomalies and characterize phosphate-bearing horizons.
3. Terms of Acquisition and Financing
To earn the 90% stake, Origen will pay $50,000 and issue 2 million shares, commit $1,000,000 in exploration expenditures over two years and grant the vendor a 15% post-earn-in share position plus a board seat; concurrently it arranged a $500,000 private placement of 10 million units at $0.05 with half warrants exercisable at $0.075 for 18 months.