Magnum Mining & Exploration Limited (ASX: MGU) has announced that it has entered into a binding acquisition agreement to acquire 100% of the issued shares of Palmares Estudos Geologicos LTDA from Beko Invest Limited, a Brazilian company.
Palmares holds granted exploration licences comprising the Azimuth and Palmares Rare Earth Element (REE) Projects, located in the Minas Gerais, Goiais, and Bahia states, Brazil.
The Azimuth Project consists of 72 granted claims (~1,201km2) across the states of Minas Gerais and Goiás, known for hosting world-class ionic clay REE deposits such as Meteoric Resources Ltd (ASX: MEI).
Azimuth claims centre across the Azimuth 125 lineament, which represents a prospective geological feature in central Brazil.
The Palmares Project consists of 18 granted claims (~348km2) in Bahia State, mainly surrounded by REE exploration projects held by ASX listed companies Equinox Resources Limited (ASX: EQN) and Brazilian Rare Earths Limited (ASX: BRE).
Palmares holds claims on the Jequié Belt, a carbonatite and alkaline intrusive corridor known to host ionic clay REE, particularly heavy rare earths (HREEs) critical for green technologies.
Current exploration work across the Azimuth and Palmares Projects includes mapping, sampling, geophysics, petrography, and trenching. Magnum has not completed any due diligence on the exploration results and will not rely on the information until completed.
Additionally, due diligence has commenced on the projects and the consideration payable is subject to shareholder approval.
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