A$35 million received as Caldeira licence moves to early 2027

Caldeira approval moves into early 2027

Meteoric Resources Limited (ASX:MEI) has pushed the expected approval date for its Caldeira Installation Licence into early 2027, adding a regulatory delay to a project now being advanced under the proposed takeover by Lynas Rare Earths Ltd (ASX:LYC). Brazil’s Minas Gerais environmental authority, FEAM, has issued additional information requests covering a broad range of project matters, with Meteoric expecting to complete its responses, and any potentially required field studies, by the end of the December quarter.

FEAM will then need additional time to assess those responses. Meteoric said the revised timing is expected to coincide with the end of Brazil’s wet season, which generally runs from October to March. The company said this could affect early earthworks and clearing, but does not substantially alter the overall construction timeline. That remains a company expectation rather than a regulatory decision.

Lynas funding keeps development work moving

While the permit process takes longer, Caldeira development is continuing. Meteoric is progressing front-end engineering and design work with Ausenco, including execution planning and procurement intended to support contractor mobilisation. Expenditure on those activities is forecast at A$18 million through 31 March 2027, with an EPCM contract for the next phase still to be awarded.

The work is being financed against an interim facility of up to A$110 million agreed with Lynas as part of the proposed all-scrip acquisition. Meteoric received the initial A$35 million tranche on 6 October, after ending September with A$29.3 million in cash and cash equivalents. The facility is intended to cover Caldeira development, transaction and implementation costs, and working capital during the Scheme process.

Scheme timetable remains subject to approvals

Meteoric said the takeover process remains on track, with the Scheme Booklet targeted for dispatch in December, a shareholder meeting expected in January 2027 and implementation targeted for March 2027. Those dates remain indicative and depend on shareholder and Court approval, as well as relevant Brazilian regulatory approval. The company said the licence delay is not expected to affect the anticipated Scheme timetable.

The proposed transaction follows a strong Caldeira feasibility case: the Caldeira DFS results outlined a 20-plus-year mine life, 146 million tonnes of probable Ore Reserves and forecast average annual TREO production of 12,500 tonnes. The quarterly report also records a September cash burn of A$8.45 million across operating and investing activities, while exploration and evaluation spending reached A$5 million for the quarter.

Resource upside continues alongside permitting

“Location map of Caldeira REE Project highlighting seven licences with JORC resources totalling 1.6Bt at 2,317ppm TREO.”

Exploration has not stopped during the approval process. Meteoric drilled 194 holes for 5,281 metres across Barra do Pacu, Capão do Mel North and Figueira West. Barra do Pacu drilling is intended to convert Indicated material to Measured Resources for a resource update early next year, while results from the step-out and scout programs remain pending.

The project’s commercial pathway also includes a non-binding strategic partnership with POSCO International, which contemplated about 30% of Caldeira rare earth material for up to seven years and potential Korean financing support. That arrangement remains subject to negotiation, due diligence, approvals and definitive documentation, leaving the Lynas Scheme as the more immediate funding and ownership event.