Origen Signs LOI to Acquire Rare Earth Project in Brazil

Executive Summary

• Origen Resources Inc. entered into a non‑binding Letter of Intent to acquire a 90 % interest in a 3,978‑ha rare earth elements (REE) concession package in Piauí State, Brazil, with an exclusive 150‑day due‑diligence period.
• The Vendor’s sampling returned one high‑grade sample of 1.61 % total REO (TREO) (excluding Y) and additional samples ranging from 0.19 % to 0.32 % TREO, indicating potential for heavy‑REE (HREE) enrichment.
• Upon successful due diligence, Origen will pay US$50,000 cash and issue 2,000,000 shares, commit C$1,000,000 of exploration spend within two years, and later grant the Vendor an additional share block equal to 15 % of outstanding shares plus a board seat.

Key Details

• Property: 3,978 ha concession package (two parcels) in Piauí State, Brazil; right of first refusal on five adjacent concessions.
• Sampling Results (Vendor):
• Highest grade: 1.61 % TREO (no Y).
• Other samples: 0.19 % – 0.32 % TREO.
• HREE/LREE ratios: 0.258 for the high‑grade sample; 0.265–0.949 for others.
• Deposit Models Under Evaluation:
• REE + U enriched phosphate beds.
• Ion Adsorption Clay Deposit (IACD) model – source of >80 % global HREE supply (2024 estimate).
• Due Diligence Terms: Exclusive 150‑day period; definitive agreement required within 180 days of LOI signing. Fieldwork supported by Vendor, Federal University of Ceará geologists, and Coast Mountain Geological Ltd.
• Acquisition Consideration:
• Cash: US$50,000 payable at closing of definitive agreement.
• Equity: 2,000,000 Origen shares issued at closing.
• Exploration Commitment: C$1,000,000 spend within two years post‑due diligence.
• Post‑completion equity grant: additional shares equal to 15 % of Origen’s outstanding share capital, inclusive of the initial 2,000,000 shares, and a Vendor board seat.
• Qualified Person: John Harrop, P.Geo., Coast Mountain Geological Ltd., supervised technical disclosure (not independent of Origen).

Notable Quotes

“We see this opportunity as a particularly good fit with the experience of our exploration team and an in‑demand target that can be evaluated quickly. Early stage, impactful acquisitions have been a key to our success in the past and we are excited to initiate the Due Diligence work on this project in the coming weeks,” – Gary Schellenberg, CEO & Director, Origen Resources Inc.