Core Energy Secures Itambe REE Project from Rio Tinto, Boosts Exploration with $2.75M Raise
Core Energy Minerals has expanded its rare earth element portfolio with the acquisition of the Itambe Project from Rio Tinto and reported promising exploration results at its Tunas Project in Brazil, supported by a $2.75 million capital raise.
- Binding agreement to acquire 100% of Itambe REE Project from Rio Tinto
- Significant REE soil anomalies with peak assays over 5,000ppm TREO at Itambe
- Encouraging high-grade REE intersections from hand-auger drilling at Tunas Project
- Successful $2.75 million placement to fund exploration and growth
- Divestment of non-core Nevada assets for $150,000 to focus on core projects
A Strategic Acquisition in Brazil’s Rare Earth Landscape
Core Energy Minerals Limited (ASX – CR3) has taken a decisive step forward in its rare earth element (REE) ambitions with a binding agreement to acquire the Itambe REE Project from mining giant Rio Tinto. Situated in Bahia State, Brazil, the Itambe project spans an impressive 31,673 hectares across 22 tenements, positioning Core Energy within a highly prospective rare earth province known for world-class deposits.
This acquisition marks a significant expansion of Core Energy’s footprint in Brazil, a jurisdiction noted for its supportive mining policies and robust infrastructure, including proximity to airports, hydropower, and ports. The Itambe project’s prior exploration by Rio Tinto focused on lithium but revealed substantial REE anomalies, including peak soil assays exceeding 5,000ppm Total Rare Earth Oxide (TREO), indicating untapped potential.
Validation Through Exploration at Tunas
Alongside the Itambe acquisition, Core Energy’s ongoing exploration at the Tunas REE Project in Paraná State has yielded encouraging results. Initial reconnaissance hand-auger drilling has identified multiple thick intersections of REE mineralisation within saprolite clay horizons, with assays reaching up to 1,822ppm TREO. These findings support the company’s exploration hypothesis that weathered regolith zones in the region are prospective for REE deposits.
Building on these results, Core Energy has lodged new tenement applications to extend the Tunas Project tenure by 8 kilometres, targeting additional radiometric anomalies that may indicate similar mineralising systems. This organic growth approach aligns with the company’s strategy to systematically advance its Brazilian portfolio.
Capital Raising and Portfolio Rationalisation
To underpin its exploration and acquisition activities, Core Energy successfully raised $2.75 million through a two-tranche placement, attracting strong support from institutional investors, existing shareholders, and directors. Notably, substantial shareholders Jose Luis Manzano and a Swiss-based investor each increased their stakes to 19%, reflecting confidence in the company’s strategic direction.
In parallel, Core Energy divested its non-core Douglas Canyon and Antimony Blossom Projects in Nevada for $150,000, a move designed to streamline its asset base and focus resources on critical minerals and uranium projects in Brazil and Australia.
Financial Position and Outlook
As of 31 December 2025, Core Energy reported a modest cash balance of $97,000, excluding expected proceeds from the placement due in early February. The company’s quarterly exploration expenditure was $521,000, reflecting active field programs and tenement maintenance. Convertible notes with a face value of $1.45 million remain outstanding, providing additional financial flexibility.
Managing Director Tony Greenaway emphasised the transformative nature of the quarter, highlighting the company’s strengthened position in Brazil’s critical minerals sector and its readiness to accelerate exploration efforts. The coming months will be critical as Core Energy advances systematic sampling and drilling programs to delineate resource potential at both Itambe and Tunas.
Bottom Line?
Core Energy’s strategic acquisition and robust exploration results set the stage for a pivotal growth phase, but timely funding and further drilling will be key to unlocking value.
Questions in the middle?
- How will Core Energy prioritise exploration activities between Itambe and Tunas projects?
- What are the timelines and prospects for shareholder approval of the remaining placement tranches?
- How might Rio Tinto’s divestment influence market perceptions of Brazil’s REE potential?
