Enova Mining Limited has executed a binding option term sheet to acquire a 100% interest in the Caraúbas Monazite Project in Paraíba, north-eastern Brazil, covering nine granted exploration licences across approximately 17,796 hectares.

The transaction gives Enova an exclusive option period until 13 October 2026 to complete technical, legal, environmental and commercial due diligence. A geology team has already mobilised to the project site within the Borborema Geological Province to conduct preliminary field reconnaissance.

To fund the acquisition and ongoing work, Enova has secured binding commitments to raise $1.5 million through an unbrokered placement priced at $0.001 per share. The placement will be issued in two tranches, with the second tranche requiring shareholder approval. The company also intends to launch a non-renounceable rights issue to eligible shareholders on the basis of one new share for every four held, aiming to raise up to approximately $495,200 at the same issue price.

If Enova exercises the option following due diligence, consideration for the acquisition will include issuing 300 million fully paid ordinary shares and 150 million options exercisable at $0.0025 within four years, alongside a 5% net smelter revenue royalty. The agreement also includes deferred payments of A$50,000 every 12 months if commercial production does not start within two years of the Brazilian National Mining Agency approving a final exploration report.

The issue of the consideration securities and the second tranche of placement shares remains subject to shareholder approval at a general meeting that must be held within three months of the election notice.

“Our exploration team has commenced its assessment of the Caraúbas Monazite Project, with field reconnaissance and due diligence activities now underway.”

“The Project represents an opportunity to secure a substantial landholding in a highly prospective region for rare earth mineralisation.”

“Our immediate focus is to assess the project's prospectivity and technical and commercial merits through a disciplined due diligence program. Subject to satisfactory completion of due diligence, exercise of the option and completion of the acquisition, we intend to advance systematic exploration to define and prioritise targets for follow-up work.”

— Eric Vesel, CEO / Executive Director

The Caraúbas asset adds to the company's existing Brazilian rare earth portfolio, which includes operations at East Salinas, Poços de Caldas, and Santo Antônio do Jacinto.

Read the full announcement: ENOVA SECURES OPTION TO ACQUIRE CARAUBAS MONAZITE PROJECT