Brazilian Critical Minerals Secures $10.65M Funding, Extends Cash Runway Beyond 7 Quarters
Brazilian Critical Minerals Limited reported a solid cash position of AUD 6.75 million at the end of December 2025, bolstered by a AUD 6 million equity raise and a loan facility extension. The company’s liquidity supports over seven quarters of operations, underpinning its ongoing exploration efforts.
- Net cash used in operating activities of AUD 1.485 million for Q4 2025
- Raised AUD 6 million through equity issuance during the quarter
- Loan facility of AUD 6.6 million extended to December 2026 at 10% interest
- Cash and cash equivalents at AUD 6.758 million at quarter end
- Total available funding of AUD 10.65 million, supporting 7.17 quarters of operations
Quarterly Cash Flow Overview
Brazilian Critical Minerals Limited has released its cash flow report for the quarter ending 31 December 2025, revealing a net cash outflow from operating activities of AUD 1.485 million. This outflow reflects ongoing exploration and corporate costs as the company advances its critical minerals projects in Brazil. Despite the operating cash burn, the company maintains a healthy liquidity position, underpinned by recent capital raising and financing arrangements.
Capital Raising and Financing Facilities
During the quarter, Brazilian Critical Minerals successfully raised AUD 6 million through equity issuance, a significant boost to its cash reserves. Additionally, the company benefits from a loan facility of AUD 6.6 million with Drake Special Solutions LLC, extended to December 2026 and carrying a 10% interest rate. This facility can be repaid either in cash or through the issuance of fully paid ordinary shares, subject to shareholder approval, providing flexibility in managing its capital structure.
Liquidity and Funding Runway
At the end of the quarter, the company held AUD 6.758 million in cash and cash equivalents. When combined with the unused portion of its financing facility (AUD 4.05 million), Brazilian Critical Minerals has total available funding of AUD 10.65 million. This funding level translates into an estimated 7.17 quarters of operational runway based on current cash outflows, giving the company a comfortable buffer to continue its exploration activities without immediate funding concerns.
Related Party Payments and Corporate Governance
The report also discloses payments of AUD 114,000 to related parties, primarily covering director fees, salaries, and superannuation. This transparency aligns with good corporate governance practices and provides investors with clarity on executive remuneration.
Outlook and Considerations
While the company’s cash burn remains steady, the strong liquidity position and extended financing facility suggest Brazilian Critical Minerals is well-positioned to sustain its exploration programs into the medium term. However, the reliance on shareholder approval for loan conversion introduces some uncertainty, and investors will be watching closely for updates on capital management strategies and exploration progress in upcoming quarters.
Bottom Line?
Brazilian Critical Minerals’ robust funding and extended cash runway set the stage for sustained exploration, but upcoming shareholder decisions on loan conversions will be pivotal.
Questions in the middle?
- Will Brazilian Critical Minerals seek additional equity raises or debt financing beyond the current facilities?
- How will the company allocate its available funding across exploration projects in Brazil?
- What are the prospects and timelines for converting the loan facility into equity, pending shareholder approval?
