By Brazil Stock Guide – Oceana Metals Ltd. announced it will acquire 100% of Brazil-based Songeo Mineração, securing control of the Serra Negra rare earth project in Minas Gerais, as the Australian miner moves to expand its exposure to critical minerals.
The transaction includes an upfront cash payment of $2.95 million and the issuance of 20 million Oceana Metals shares, priced at A$0.36 each upon completion. The agreement also includes additional milestone-based payments tied to resource estimates at the project.
Under the terms, Oceana Metals will pay an additional $750,000 in cash once an initial resource estimate for Serra Negra is released. A further $1.5 million payment will be triggered if the company defines a minimum resource of 100 million tonnes grading 4% Total Rare Earth Oxides (TREO), or equivalent.
Songeo’s current owners will retain a 2.5% royalty over commodities extracted from the project’s permits. Oceana Metals will hold a right of first refusal if that royalty is offered to third parties.
The company is also planning to raise approximately $20 million through a private placement of new shares aimed at institutional and professional investors. The capital raise will be executed in two tranches, with the second subject to shareholder approval.
Canaccord Genuity will act as lead manager and bookrunner for the offering, while Euroz Hartleys Ltd. will serve as co-manager.
Operational plans for Serra Negra include re-evaluating historical drill core data, conducting new drilling campaigns, geophysical surveys and metallurgical testing. The company aims to integrate these datasets to support an initial resource estimate and subsequent updates.