Origen Signs Definitive Agreement and Increases Rare Earth Element Land Position in Brazil to 35,000 Hectares
Executive Summary
- Origen Resources signed a definitive agreement to acquire a 90 % interest in two rare‑earth element (REE) project areas in Piauí State, Brazil, and obtained a right of first refusal on five additional concessions.
- The transaction includes payment of US$50,000 cash, issuance of 2 million Origen shares, a commitment to spend US$1 million on exploration within two years, and an eventual issuance of additional shares equal to 15 % of outstanding equity plus a board seat for the vendor.
- Concurrently, Origen arranged a private‑placement financing of $500,000 through 10 million units at $0.05 per unit (each unit = 1 common share + ½ warrant), with warrants exercisable at $0.075 for 18 months.
Key Details
- Acquisition Terms
- Purchase price: US$50,000 cash + 2,000,000 Origen shares.
- Exploration commitment: US$1,000,000 of expenditures within two years of CSE filing completion.
- Post‑completion equity kicker: additional shares equal to 15 % of outstanding shares (including the initial 2 M shares) and a vendor board seat.
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Share hold period: four months and one day from issuance.
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Land Package
- Initial stake: >21,000 hectares across two REE project areas.
- Additional applications granted: 21,650 hectares, bringing total controlled area to 35,540 hectares in the emerging REE district.
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Right of first refusal on five other concessions totaling ~9,903 hectares.
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Due‑Diligence Fieldwork
- Collected 23 rock and 16 soil samples at 31 stations; analyses performed by XRF, ICP‑OES/MS, ammonium sulphate leach, and radiometric spectrometry.
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Results confirmed vendor and Brazilian Geological Survey (SGB) anomalies and identified mineralization in phosphate nodule‑bearing beds and phosphatic sandstone horizons.
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Technical Services
- Coast Mountain Geological Ltd. retained for technical and project management services; holds 2.9 % of Origen shares.
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Qualified Person: John Harrop, P.Geo., supervised scientific disclosure (not independent per NI 43‑101 but deemed acceptable by the company).
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Financing Details
- Private placement: 10,000,000 units @ $0.05/unit = $500,000 gross proceeds.
- Unit composition: 1 common share + ½ warrant; each whole warrant exercisable at $0.075 for 18 months.
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Securities subject to CSE filing requirements; hold period identical to acquisition shares (four months and one day).
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Strategic Rationale
- Acquisition provides first‑mover advantage in a newly documented REE district, positioning Origen to develop a basin‑scale land package with confirmed anomalous mineralization.
Notable Quotes
“Based on our initial observations, this project has all the ingredients to turn into something significant and launch this region of Brazil into the REE spotlight… we will be moving forward to exploit first mover advantage and solidify a basin‑scale land position,” – Gary Schellenberg, CEO & Director.