Brazilian Rare Earths restructures Rio Tinto deal

<a href='https://grafa.com/economy/brazil-br'>Brazil</a>ian Rare Earths <a href='https://grafa.com/asset/brzlinrare-fpo-25798-bre.asx'>(ASX:BRE)</a> has signed a binding agreement with <a href='https://grafa.com/company/rio-tinto-ltd-9670'>Rio Tinto</a>'s <a href='https://grafa.com/asset/rio-tinto-ltd-9670-rio.asx'>(ASX:RIO)</a> <a href='https://grafa.com/economy/brazil-br'>Brazil</a>ian subsidiary to restructure the Amargosa tenement acquisition agreement, replacing a US$40 million ($64.1 million) milestone payment with a fixed US$1/wet tonne life-of-mine royalty on bauxite sales. The Amargosa Bauxite Project, acquired from <a href='https://grafa.com/company/rio-tinto-ltd-9670'>Rio Tinto</a> in 2023, is a large-scale, advanced-stage project in Bahia, <a href='https://grafa.com/economy/brazil-br'>Brazil</a>, adjacent to BRE’s rare earth holdings. Backed by over a decade of <a href='https://grafa.com/company/rio-tinto-ltd-9670'>Rio Tinto</a> exploration and nearly 57,000m of drilling, Amargosa has confirmed thick, high-grade bauxite zones, with standout results including 27.5m at 51.3% total available alumina. Re-assaying of historical samples at the nearby Pelé Bauxite Project revealed a high-grade gallium discovery with grades up to 190 ppm Ga₂O₃—placing it among the world’s top undeveloped gallium prospects. With gallium supply increasingly threatened by geopolitical tensions, this development positions Amargosa as a critical source of both bauxite and gallium. Located near railways and ports, the project benefits from low-cost renewable energy, skilled labour, and <a href='https://grafa.com/economy/brazil-br'>Brazil</a>'s favourable mining regime. <a href='https://grafa.com/economy/brazil-br'>Brazil</a>ian Rare Earths has appointed RPM Global to accelerate JORC-compliant resource estimates and a scoping study.