Enova Mining has reached a binding option agreement with Rodrigo de Brito Mello, granting the company an exclusive option to acquire a 100% interest in the CODA tenements.

This move allows Enova to expand its footprint in the rare earth sector, particularly in the state of Minas Gerais, Brazil, known for its mining-friendly environment.

The CODA tenements, covering 15,334ha, have shown promising results from exploration drilling, indicating the presence of rare earth elements (REE)-enriched ionic absorption clay (IAC).

To date, 11 shallow auger holes have been drilled, with two tenements confirming the potential for REE-enriched IAC and suggesting further success in the remaining areas.

Under the terms of the agreement, Enova has until 20 March 2024 to exercise its option.

The company is required to make a non-refundable option fee payment of A$50,000 within five days of signing the agreement.

Upon completion of the payments and share issuance as stipulated, Rodrigo de Brito Mello will transfer his 100% interest in the tenements to Enova.

Both parties have agreed to negotiate and enter a formal agreement upon request, which will document the terms of the option agreement and include standard conditions for such an arrangement.

The location and size of the tenements are considered highly prospective by Enova, given their geological features.

The Patos Formation, which is present in the CODA project area, is a geological unit from the Upper Cretaceous period.

It was formed during a significant volcanic event in the western part of Minas Gerais, adding to the tenements' potential for REE deposits.