Oceana Metals to Pay Up to US$10.3M for Serra Negra with $20M Placement

Oceana Metals Targets Global-Scale Rare Earths in Brazil

Oceana Metals Limited (ASX:OCN) is making a decisive leap into the critical minerals arena with the binding acquisition of the Serra Negra rare earths and niobium project in Minas Gerais, Brazil. The deal, valued at up to US$10.3 million in cash and shares plus a 2.5% net smelter royalty, positions Oceana to tap into one of the world’s largest carbonatite complexes, a geological formation renowned for hosting significant rare earth element (REE) deposits.

Serra Negra spans an impressive 10 kilometres in diameter, dwarfing the nearby Araxá complex that hosts the world’s largest niobium deposit. Historical drilling at Serra Negra, previously focused on phosphate and titanium, left a trove of 13,800 metres of core unassayed for REE and niobium. Oceana’s recent due diligence, including portable XRF screening and laboratory assays, has confirmed thick intervals of high-grade REE mineralisation, with total rare earth oxide (TREO) grades hitting up to 8.41% in select samples.

$20 Million Placement Fuels Exploration Ambitions

To bankroll the acquisition and an ambitious exploration agenda, Oceana has secured firm commitments for a $20 million share placement at $0.36 per share. The placement is anchored by a mix of domestic and international institutional and sophisticated investors, with Canaccord Genuity leading the syndicate alongside Euroz Hartleys. Tranche 1 of the raise, worth $7.4 million, has already been completed, while Tranche 2, totalling $12.6 million including director participation, awaits shareholder approval at a general meeting slated for early July.

Post completion, Oceana expects a robust pro forma cash position of approximately $17.6 million, enabling an accelerated exploration program. This includes re-assaying around 8,000 metres of historic drill core on one-metre intervals and launching a 20,000-metre drilling campaign to define mineral resources and test district-scale targets. The company also plans geophysical surveys and early-stage metallurgical test work to refine processing pathways and de-risk future development.

Strategic Board Refresh Aligns with Critical Minerals Focus

Reflecting its pivot to critical minerals, Oceana has reshaped its board. Experienced REE geologist Hamish Halliday has joined as a non-executive director, bringing 30 years of global exploration and corporate experience, including REE projects. Brazilian mining lawyer Rodrigo Roso will also join post-acquisition, offering deep local expertise in project development and corporate finance. Russell Curtin has been appointed chair, replacing Martin Helean, who, along with Sam Brooks, resigned to make way for the new leadership. Alexandra Hughes has joined as joint company secretary, bolstering governance and capital markets expertise.

Oceana’s managing director Mick Wilson highlighted the transformative potential of Serra Negra, noting the project's tier-one jurisdiction, established infrastructure, and significant upside for rare earths and niobium exposure amid global electrification and energy transition trends. The company’s technical team is poised to unlock the project’s value through systematic exploration and resource definition.

Brazil’s Mining Jurisdiction and Rare Earths Landscape

Minas Gerais state, where Serra Negra is located, is a mining powerhouse contributing 40% of Brazil’s mining revenue and offering stable regulatory frameworks and infrastructure. The Alto Paranaíba Igneous Province hosts multiple world-class alkaline carbonatite complexes, including CBMM’s Araxá niobium mine and St George Mining’s Araxá REE-niobium project. Oceana’s entry into this district aligns with Brazil’s growing role as a global hub for critical minerals, supported by government incentives and substantial federal funding targeting rare earths and associated industries.

Serra Negra’s geological setting shares key characteristics with these established deposits, featuring large, laterally continuous carbonatite intrusive units with confirmed REE and niobium mineralisation. Oceana’s exploration strategy aims to rapidly advance the project through resource estimation and metallurgical studies, with the potential to deliver a significant new source of critical minerals.

Meanwhile, Oceana continues to advance its existing projects, including the Solonópole lithium project in Brazil and the Napperby and Bangemall projects in Australia, maintaining a diversified portfolio of critical and base metals assets. This acquisition and capital raise mark a pivotal moment in Oceana’s evolution, signaling a clear focus on rare earths and strategic growth in a globally significant mining jurisdiction.

Oceana’s recent operational moves, including trenching and technical reviews at Solonópole, underscore its broader commitment to critical minerals exploration and value creation in Brazil and Australia, setting the stage for a new chapter in the company’s development Oceana Metals Advances Brazil Trenching and Oceana Metals Advances Lithium and Base Metals.