Eminence Minerals Limited (ASX: EMA) has entered into a binding agreement to sell its Mata da Corda project in Minas Gerais, Brazil. The divestment includes 51 exploration licenses and all associated technical data. The company will receive a total cash consideration of USD $2.0 million for the asset. This transaction allows Eminence to simplify its corporate structure and generate immediate, non-dilutive funding, which the company intends to redeploy to higher-priority exploration efforts.

The project is being acquired by Titanium Global SPE Ltda, an entity represented by Marco Antônio dos Santos Amorin and Ronaldo Fernando do Amaral. These purchasers will assume full responsibility for the ongoing development and exploration of the site following the completion of the deal. Regulatory procedures, including the transfer of licenses through the Brazilian National Mining Agency, remain subject to customary closing conditions. The company confirmed that no shareholder approval is required for this divestment.

"This strategic transaction allows us to recognise value from the Mata da Corda Project, while maintaining strong financial discipline and focus across our portfolio. Importantly, the transaction provides non-dilutive funding that strengthens our balance sheet and supports the continued advancement of our priority projects. We believe this outcome reflects the value generated through our technical work at Mata da Corda and is consistent with our strategy of actively managing the portfolio to maximise shareholder value."

— Anthony Hills, Chief Executive Officer

This move is part of a broader shift in the company’s capital allocation strategy. Eminence Minerals continues to prioritize the Campo Grande Rare Earth Project in Bahia, Brazil, where drilling is currently active. The cash proceeds from the sale will bolster the company's proforma cash position, further supporting its technical programs at the flagship rare earth asset. By shedding non-core assets, the business aims to sharpen its operational focus and ensure that its limited capital resources are directed toward projects that align with its long-term growth objectives. The transaction is expected to conclude within 90 days, provided all standard conditions are satisfied.

Read the full announcement: Strategic Divestment of Mata da Corda Project