Canamera Energy Metals Corp. (CSE: EMET) (OTCQB: EMETF) (FSE: 4LF0) announced it has signed a non-binding letter of intent to acquire an option to earn a 100% interest in the Patos ionic clay rare earth element project in Minas Gerais, Brazil, covering approximately 15,979 hectares. The agreement outlines a two-stage process, beginning with a C$20,000 due diligence auger drill program of up to 10 holes to confirm ionic clay REE mineralization. If the option is exercised, the company would pay aggregate consideration of C$228,000 in cash and C$307,800 in common shares, and grant a 2% net smelter return royalty in favor of the vendor, with a buyback right to reduce the royalty to 1% for C$228,000.
The Patos project adds to Canamera's growing portfolio of rare earth and critical metals assets across the Americas. The company's existing holdings include the Mantle project in British Columbia, the Garrow rare earth elements project in Northern Ontario, the Schryburt Lake rare earth and niobium project in Ontario, the Iron Hills critical and rare earth project in Colorado, USA, and the Turvolândia and São Sepé rare earth element projects in Brazil. By targeting underexplored regions with strong geological signatures and supportive jurisdictions, Canamera applies geochemical, geophysical, and geological datasets to generate and advance high-conviction, first-mover exploration targets.
This move highlights the growing interest in ionic clay rare earth deposits, which are known for their potential to host valuable heavy rare earth elements used in permanent magnets, electronics, and defense technologies. Brazil has emerged as a key jurisdiction for such deposits, with several companies exploring similar projects in the country. The low-cost initial due diligence program allows Canamera to assess the project's potential before committing to the full option terms.
Investors can view the full press release at https://ibn.fm/MXF5G. For the latest news and updates relating to EMETF, visit the company's newsroom at https://ibn.fm/EMETF.
