Enova Mining has announced plans to proceed with an option agreement it entered into with B Geologia E Mineração, Mineração Paranaí Ltda and Rafael Viola Mottin on 18 December 2023, to acquire 100% of tenements in Brazil.

As per the binding agreement, Enova was granted an option to acquire a 100% interest in the Carai, Juquia, Poços, Resplendor, Salinas East and Santo Antônio permits in the state of Minas Gerais.

Enova noted that it will proceed with the acquisition of the Poços de Caldas Rare Earth and Brazil Lithium Valley Tenements after confirming that due diligence has de-risked the project opportunity.

It added that the due diligence was carried out by a team led by Dr Klaus Petersen and geologist Leonardo Souza.

Due diligence identified considerable outcrops of saprolite clay within Enova’s Poços rare earth elements project areas in Brazil’s prolific Poços de Caldas/Caldera Alkaline Complex.

Additionally, the team discovered numerous pegmatite outcrops in the tenement regions of Resplendor, Carai, Santo Antônio and Salinas East, which are indicative of potential lithium mineralisation.

These resources offer a solid foundation for growing the corporation's operations in a favourable mining business climate, such as that in Minas Gerais, Brazil.

Completion of the transaction is subject to Enova shareholder approval, and will allow the company to transfer assets to a Brazilian-registered Enova-held company.

Enova Mining said in a statement: “The Board intends to promptly commence exploration, firstly focusing on identifying drill targets with rare earth potential at Poços de Caldas.

“At the same time, we will commence general exploration (multi-spectral survey, mapping and geochemical sampling) in the other tenement areas. Tenements at Carai are considered priority, searching for litiniferous minerals.

“Enova welcome the Option Agreement vendors as future stakeholders. Their experience and advice in establishing our business in Brazil will be invaluable and allow us to focus on the core business of exploration.”

Enova added that it is committed to developing the Charley Creek rare earth project, with ongoing activities proceeding without disruption.

It will also continue to review projects and business opportunities as they arise, as is the case with the Brazil project.