Canamera Executes Option Agreement to Acquire 100% Interest in Two Brazilian Rare Earth Projects
Executive Summary
- Canamera Energy Metals Corp. entered into a definitive option agreement giving it the right to acquire 100 % of the Turvolândia and São Sepé rare‑earth ionic‑clay projects in Brazil.
- The option requires an initial cash payment of $75,000 and issuance of $125,000 worth of Canamera shares, plus a total of $1.5 M in committed exploration expenditures over three years.
- Additional contingent payments up to $3 M are tied to achievement of key development milestones (resource estimate, PEA, Feasibility Study), and a 1 % NSR royalty will be granted to the seller with a partial repurchase right.
Key Details
- Option Structure – Canamera may acquire 100 % of the two projects by:
- Paying $75,000 cash (due within two business days of CSE approval).
- Issuing shares valued at $125,000 (based on VWAP of the ten trading days prior to announcement).
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Funding a minimum of $1.5 M in exploration expenditures ($500k per year for three years).
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Exploration Commitment – $500,000 each in Years 1‑3, payable as incurred.
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Royalty Terms – Upon exercise, iFind Mining Inc. receives a 1 % net smelter return royalty on commercial production; 0.5 % may be repurchased by Canamera for a cash payment of $500,000.
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Contingent Milestone Payments to iFind Mining Inc.:
- Mineral Resource Estimate – $500,000
- Preliminary Economic Assessment – $1,000,000
- Feasibility Study – $1,500,000
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Total Potential Contingent Payment: $3,000,000 (payable in cash or Canamera shares at VWAP of the ten trading days prior to issuance).
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Finder’s Fee – Up‑to $70,000 payable in common shares:
- $20,000 issued upon CSE approval.
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Remaining balance issued upon publication of a mineral resource estimate.
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Regulatory Conditions – Option agreement subject to Canadian Securities Exchange (CSE) approval; no change of control anticipated. Shares issued to optionors will be restricted from resale for four months and one day.
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Strategic Rationale – Acquisition aligns with Canamera’s focus on critical minerals in Tier 1 jurisdictions, expanding its rare‑earth portfolio in Brazil.
Notable Quotes
“We believe that this proposed acquisition aligns with our strategic focus on critical minerals projects in Tier 1 mining jurisdictions and complements our existing portfolio. We are very pleased to be adding this Brazilian project.” – Brad Brodeur, CEO, Canamera Energy Metals Corp.