Oceana Metals Confirms High-Grade Rare Earths at Serra Negra with $20m Placement Boost

Serra Negra Assays Validate Top-Tier Rare Earth Potential

Oceana Metals (ASX:OCN) has confirmed that historic drill core re-assays from its soon-to-be-acquired Serra Negra Rare Earths Project in Brazil have delivered thick intervals of high-grade rare earth element (REE) mineralisation. Notably, assays include 50 metres at 4.0% total rare earth oxides (TREO) and a partial 22-metre intercept grading 4.7% TREO, placing Serra Negra among the higher-grade carbonatite-hosted REE deposits globally. These results validate a 1km by 1.5km priority target corridor ahead of a 20,000-metre diamond drilling campaign set to commence imminently.

The project is hosted within one of Brazil’s largest carbonatite complexes in Minas Gerais, a region known for significant niobium and phosphate operations. The geological continuity of mineralisation over at least 900 metres strike, combined with peak assays exceeding 10% TREO in individual metres, underscores the project's scale and grade potential. Oceana’s re-assay program is ongoing, with the majority of historic core yet to be analysed, promising further news flow in coming months.

Acquisition and Funding Positioned for Rapid Advancement

Oceana entered a binding agreement to acquire 100% of Songeo Mineração, the holder of Serra Negra, for up to US$10.3 million. The deal includes upfront cash and shares, with deferred payments tied to resource milestones, and a 2.5% net smelter royalty payable to vendors. Completion remains subject to regulatory approvals from Brazil’s National Mining Agency, expected shortly.

Backing this acquisition is a fully subscribed $20 million placement completed in two tranches at $0.36 per share, attracting domestic and international institutional investors. The capital raise provides Oceana with the financial firepower to meet acquisition costs, accelerate exploration including the upcoming drilling and geophysical surveys, and advance other projects.

Strategic Board Changes and Local Operations Build-Out

Reflecting its strategic pivot to Brazilian rare earths, Oceana refreshed its board and senior management. Russell Curtin transitioned to Non-Executive Chair, Hamish Halliday joined as Non-Executive Director, and Brazilian mining lawyer Rodrigo Roso is set to join the board upon acquisition completion. On the ground, Oceana established a Brazilian subsidiary and appointed key personnel including a Land Access and Environment Manager and a Local Manager, signaling commitment to operational execution and regulatory compliance.

Exploration Progress Beyond Serra Negra

Oceana continues to advance its other assets, including the Solonópole lithium project in Ceará, Brazil, where trenching returned modest lithium values up to 0.47% Li2O over 0.5 metres. While these results are preliminary and lithium grades remain low to moderate, further evaluation and potential shallow drilling are under consideration.

In Australia, technical reviews of the Bangemall base metals project in Western Australia and the Napperby project in the Northern Territory are ongoing. The Bangemall tenure overlays a major fault system with historical base metal anomalies, while Napperby sits in a mineral-rich Proterozoic terrane with potential for a broad suite of commodities. Oceana’s new technical team is adopting a comprehensive mineral systems approach to these projects.

Financial Position and Outlook

Oceana ended the June quarter with $8.16 million in cash, a substantial increase from $1.72 million in March, reflecting the first tranche of the placement. The second tranche settled post-quarter, adding approximately $12.6 million. Operating cash outflows were largely driven by project evaluation and exploration activities, including technical studies and due diligence on Serra Negra.

The company’s disciplined approach focuses on delivering a maiden JORC mineral resource estimate at Serra Negra in the near term, supported by the extensive historic core re-assay program and the imminent 20,000-metre drilling campaign. The combination of high-grade assay results, strategic funding, and local operational build-out positions Oceana to capitalize on the growing global demand for critical minerals aligned with energy transition trends.