Magnum Mining Advances Brazil REE Projects and US Processing Hub with $7M Raise

Strong Leach Test Results Bolster Brazilian Rare Earth Prospects

Magnum Mining & Exploration Limited (ASX, MGU) has delivered encouraging progress in its rare earth elements (REE) projects in Brazil, notably at the Feirinha Prospect within the Palmares Project. Recent leach testing returned over 1,100 ppm total rare earth oxides (TREO) at ambient temperatures and rapid processing times, underscoring the site’s potential as a high-value magnet feedstock source. These results, achieved with minimal leach residency, suggest efficient and cost-effective extraction pathways, with further optimisation work planned.

The company has also advanced drilling preparations across its Azimuth 125 and Palmares projects, identifying 19 high-priority prospects for exploration. These targets, many of which represent greenfield opportunities with no prior exploration, are strategically located near established REE projects, enhancing their prospectivity.

Strategic Expansion into US Critical Minerals Processing

In a significant strategic pivot, Magnum announced plans to develop a critical minerals processing hub at its 100%-owned Huxley and Colado sites in Nevada, branded the Lovelock Processing Hub. This facility aims to produce high-grade antimony and REE products, aligning with US government initiatives to bolster domestic critical minerals supply chains. The sites benefit from excellent infrastructure, including direct rail access and proximity to the Hawthorne Military Depot, a key stockpiling facility for critical minerals.

Magnum is actively engaging permitting consultants and exploring eligibility for the FAST-41 accelerated permitting process, which could expedite project development. This move positions Magnum as a potential cornerstone supplier within the US critical minerals sector, serving defence, energy transition, and industrial markets.

Capital Raise and Collaborative Innovation Drive Growth

Supporting its ambitious US expansion, Magnum successfully raised A$7 million through an oversubscribed placement. The funds will underpin the Lovelock Processing Hub development, advance Brazilian REE assets, and enable further US critical mineral acquisitions. This capital injection comes at a pivotal moment as policymakers intensify efforts to secure domestic critical mineral supply chains.

Complementing its exploration and processing initiatives, Magnum entered a binding Memorandum of Understanding with Homerun Resources to jointly develop REE separation technology. This collaboration focuses on utilising ultra-pure silica sand for ion-exchange chromatography, potentially offering a lower environmental footprint and higher purity separation of heavy REEs compared to conventional solvent extraction methods.

Governance and Financial Position Reflect Strategic Realignment

Reflecting its evolving strategic direction, Magnum implemented significant board changes, appointing Michael Davy as Non-Executive Chairman and Les Pereira as Non-Executive Director, while other directors stepped down. These changes aim to strengthen governance aligned with the company’s critical minerals focus.

Financially, Magnum reported a cash balance of A$0.513 million at the end of the quarter, with operating cash outflows reflecting increased exploration and corporate activities. The company expects operating cash flows to continue at similar or higher levels, supported by the recent capital raise and cost management initiatives.