BCM turns Ema’s next phase into a supply chain strategy

BCM pairs Ema FEED with reagent supply control

Brazilian Critical Minerals Limited (ASX:BCM) has used the September quarter to push Ema beyond feasibility and closer to development execution, while pursuing control of a key input for the proposed rare earths operation. The company ended the period with approximately A$12.2 million in cash after completing a roughly A$10 million institutional placement and has since agreed to acquire 90% of a Brazilian magnesium sulphate producer.

The placement, completed in two tranches at A$0.053 a share, attracted new and existing institutional investors and raised approximately A$10 million before costs. BCM said the proceeds are being directed towards Ema’s FEED program, production well drilling, early project equipment, administration and working capital. The raise follows the company’s previously reported A$10 million placement, which was intended to move Ema towards a final investment decision.

Ema enters a 24-week engineering phase

Altris Engineering has been appointed lead design engineer for FEED, retaining continuity from the bankable feasibility study. The program is expected to run for about 24 weeks and will mature the process design from pregnant leach solution received from the in-situ recovery wellfield through impurity removal, mixed rare earth carbonate precipitation, dewatering and product loadout.

BCM plans to use the work to confirm major equipment selections, prepare vendor specifications and requests for quotation, and update the capital estimate, execution plan and implementation schedule. Once FEED is complete, a qualified Brazilian contractor is expected to take on detailed engineering and construction documentation, with Altris providing technical oversight. The appointment extends the Altris FEED appointment, which earlier set a 24-week program aimed at improving Ema’s financing and construction readiness.

INCRA consent remains the licensing gate

Permitting has advanced, but the project has not cleared its final land-related hurdle. BCM held a public hearing in Apuí on 9 September as part of the National Institute for Colonisation and Agrarian Reform process for activities on federally controlled land. The company said INCRA consent is the last remaining land-related document required by Amazonas environmental authority IPAAM for the current licensing process.

A letter confirming mineral-title regularity, requested by IPAAM from Brazil’s National Mining Agency, has already been lodged. BCM’s December-quarter priorities include finalising landholder compensation arrangements and progressing the INCRA consent in Brasília before submission to IPAAM.

Magnesium sulphate deal adds capability and obligations

After quarter end, BCM’s Brazilian subsidiary agreed to acquire 90% of Sais Nordeste, an established magnesium sulphate producer in Feira de Santana, Bahia, for nominal cash consideration of R$1. Magnesium sulphate is the principal leaching reagent proposed for Ema’s in-situ recovery process. The plant’s initial capacity is expected to cover about 50% of Ema’s requirements during the first few years of production, with potential expansion beyond 100%.

The transaction is more complicated than its headline price suggests. Sais Nordeste entered Brazilian judicial recovery in February 2026, and BCM expects to fund and oversee its financial and operational restructuring. Legacy tax and other obligations are estimated at approximately R$15.3 million, or about A$4.2 million, with most expected to be scheduled over 10 years. Completion still depends on conditions precedent and judicial, regulatory and corporate approvals, while an engineering assessment is under way to determine the plant modifications required for Ema. The proposed transaction had been outlined in BCM’s magnesium sulphate deal, which described the same plant’s supply-chain role and legacy liabilities.

Cash runway improves while project funding remains unfinished

Quarterly cash outflows totalled A$1.72 million, including A$1.31 million on exploration and evaluation and A$0.60 million on administration, corporate and staff costs. The Appendix 5B shows A$12.18 million in cash at quarter end, alongside A$4.45 million of unused capacity under a secured convertible loan facility. On the company’s calculation, those resources represented 9.65 quarters of funding at the quarter’s relevant cash-outflow rate, although that measure does not constitute project financing for Ema’s construction.

BCM said offtake discussions have progressed to detailed evaluation by selected parties, but no agreements have been signed. Project-financing discussions also remain under way. The unresolved shareholder litigation involving Drake Private Investments continues after July mediation failed to settle the dispute, adding another live issue alongside permitting, FEED cost updates and the proposed Sais Nordeste restructuring.