Verde AgriTech Drilling Confirms From-Surface, High-Grade, Clay hosted Rare Earth Mineralization, Open for Expansion in Minas Gerais, Brazil
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On December 2, 2025, Verde AgriTech announced initial drilling results from its new Minas Americas Global Alliance rare earth elements (REE) project in Minas Gerais, Brazil. The company completed three vertical auger drill holes, all of which intersected continuous, clay-hosted REE mineralization from surface and were still in mineralization when the holes ended.
Key intercepts include: - MAV_AD 002: 14.2 meters of 6,858 ppm Total Rare Earth Oxides (TREO), including 1,673 ppm Magnet Rare Earth Oxides (MREO). - MAV_AD 001: 8.7 meters of 5,776 ppm TREO, including 1,388 ppm MREO. - MAV_AD 003: 12.2 meters of 2,563 ppm TREO, including 484 ppm MREO.
The CEO, Cristiano Veloso, stated that the results validate the company's belief in the project's scale and quality, materially increasing confidence. The company reiterated its timeline to advance towards a maiden NI 43-101 mineral resource estimate in Q1 2026 and a Preliminary Economic Assessment (PEA) in Q2 2026. A 200-hole drill program is currently underway.
This news is materially positive as it represents the first drilling confirmation of the significant REE discovery announced in October 2025, which was based on surface trenching. The results are a crucial de-risking step, confirming that the high-grade mineralization seen at surface extends to depth and is continuous. Hitting mineralization from surface is critical for a potential low-cost, open-pit mining operation, which is typical for ionic adsorption clay (IAC) deposits.
The grades reported, particularly in holes 1 and 2, are very strong for a clay-hosted deposit and are consistent with the high-grade surface samples previously announced. This provides strong validation for the geological model and increases the probability of defining a substantial resource. The company is effectively executing on its accelerated development plan, meeting its Q4 2025 milestone of providing an initial drilling update and building confidence in its ability to deliver a maiden resource in Q1 2026.
However, the company's precarious financial situation and the deep crisis in its core fertilizer business remain significant concerns. The Q3 2025 results (released November 12, 2025) confirmed an ongoing operating loss and the difficult market conditions in Brazilian agriculture. While the REE discovery has completely changed the investment narrative, the company is funding this exploration from a weak balance sheet burdened by nearly $49 million in debt. This news does not alter the underlying financial risks but strengthens the case for the REE asset, which is now the primary driver of the company's valuation.
Verde AgriTech is a Brazilian-based company historically focused on producing and selling potash-based fertilizers for the domestic agricultural market. The company has struggled significantly since 2023 due to a severe crisis in the Brazilian farm economy, characterized by tight credit, high interest rates, and farmer insolvencies.
In October 2025, the company's focus dramatically shifted with the announcement of a district-scale, high-grade, clay-hosted REE discovery on its existing mineral claims. This project, now named the Minas Americas Global Alliance, has become the company's flagship asset and primary value driver. The discovery spans approximately 5,500 hectares and is characterized by high concentrations of valuable magnet rare earths (Nd, Pr, Dy, Tb). The company is now pursuing a dual strategy of managing its legacy fertilizer business while fast-tracking exploration and development of the REE project.