Canada Rare Earth has successfully secured the right to boost its ownership in the Bom Futuro tailings property in Rondonia, Brazil, from the current 20% to 52%.
Three of the owners of Bom Futuro have consented to allow Canada Rare Earth to increase its stake by facilitating development funding.
Additionally, the critical mineral mining company will take over as the operator of the project, which already holds permits for extraction activities. Currently, Canada Rare Earth is collaborating with investment bankers to raise the necessary funds to initiate operations at the property.
The Bom Futuro site has accumulated approximately 70 million tonnes of tailings over 25 years of tin mining by Paranapanema and other artisanal operators. This location is believed to contain various essential and commercially viable minerals, including tin/cassiterite, ilmenite, zircon, and rare earths. The tailings occupy 590 hectares within a larger lease property spanning 9,960 hectares.
As the project leader, Canada Rare Earth is actively conducting development work to finalize operational plans and production estimates for the extraction of essential minerals. This work encompasses bulk materials testing, the development of flow sheets, equipment selection, financial modeling, and mineral/metallurgical analyses.
Tracy A. Moore, CEO of Canada Rare Earth, commented, “In the very near term, we expect to capitalize on the essential minerals contained within the tailings by applying more modern approaches, know-how, and equipment than has historically been utilized. Our goal is to provide value to our shareholders and stakeholders and to become a significant, contributing member of the local community in proximity to the project, which for years produced 3% of the global tin supply.”
In February 2019, the company entered into an agreement to acquire a stake in the tailings property, involving a consideration of $12 million (C$16.33 million), payable over ten years, with a $600,000 deposit made at the time of closure.
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