Perpetual’s Brazil Expansion Raises Stakes Amid Tightening Cash and Upcoming Drilling

Transformational Acquisition in Brazil’s Lithium Heartland

Perpetual Resources Ltd (ASX: PEC) has marked a significant milestone this quarter with the completion of a transformational acquisition of three advanced lithium exploration licenses, Igrejinah, Renaldinho, and Matrix, in Brazil’s renowned Lithium Valley. Situated less than 3km from its existing Isabella lithium project in Minas Gerais, these licenses lie within the prolific Araçuaí Pegmatite District, a region responsible for over 90% of Brazil’s lithium production.

The acquisition secures Perpetual an option to acquire up to 90% ownership in a Special Purpose Vehicle holding the tenements, covering a combined area of 2,559 hectares. The staged agreement includes exclusivity payments and a final acquisition payment, with K2 Mineração & Exportação Ltda retaining a buy-back right under certain conditions.

High-Grade Lithium Mineralisation Confirmed

Fieldwork and sampling across the new licenses have yielded impressive results. At Igrejinah, assays from artisanal workings and channel samples have returned spodumene grades as high as 7.6% Li2O, with outcropping spodumene crystals measuring up to 50cm. Multispectral satellite mapping has identified 52 high-priority targets, including 24 with distinct spodumene spectral signatures, indicating extensive mineralisation corridors up to 1.4km in strike length.

Similarly, the Renaldinho project has confirmed a 2.1km corridor of high-grade spodumene mineralisation, with assays up to 3.71% Li2O. The Matrix license, adjacent to Sigma Lithium’s operations, remains largely unexplored but shows promising geological features consistent with lithium-bearing pegmatites.

Advancing Drilling and Exploration Programs

Perpetual is preparing for its maiden lithium drilling campaign scheduled for the second quarter of 2025, prioritising the drill-ready targets at Igrejinah. Complementary high-resolution LiDAR surveys have refined structural interpretations and improved drill targeting, while ongoing geological mapping and sampling continue to expand the understanding of mineralisation across the portfolio.

At the Isabella project, a newly identified fourth spodumene-bearing pegmatite trend has been confirmed, further enhancing the project’s scale and potential.

Rare Earths and Strategic Metals Exploration Progress

Beyond lithium, Perpetual’s Raptor Rare Earth Element (REE) project has delivered encouraging metallurgical test results. Conducted by ANSTO, tests confirm the presence of Ionic Adsorption Clay (IAC) REE mineralisation with magnet rare earth element recoveries (Nd, Pr, Tb, Dy) averaging 69% and reaching up to 94%. These findings position Raptor as a significant IAC REE discovery with promising economic potential.

Additionally, exploration at the Itinga Tin Project has uncovered exceptional tin grades exceeding 20% Sn, alongside tantalum and niobium mineralisation. Planned activities for the June quarter include detailed mapping, soil and rock sampling, and trenching to delineate drill targets, capitalising on strong global tin market conditions.

Corporate and Financial Highlights

Perpetual strengthened its board with the appointment of Rafael Mottin, an experienced mining executive with deep expertise in Brazilian mineral exploration and project development. Meanwhile, Non-Executive Director Brett Grosvenor resigned post-quarter.

Financially, the company reported a cash balance of AUD 0.94 million at quarter-end, with exploration and evaluation expenditures of AUD 138,000 and acquisition payments of AUD 266,000 during the period. The company continues to manage its capital prudently as it advances multiple projects toward drilling and resource definition.