Ironbark Zinc (IBG) has acquired the Perseverance Project in Brazil, which is considered prospective for lithium, rare earth elements (REEs) and niobium.

The deal involves a cash payment of A$100,000 ($66,791) for 100% ownership of Perseverance Lithium, the entity owning the project.

For this acquisition, Ironbark will undertake a two-tranche placement to raise A$715,000. This placement will involve the issuance of 178.7 million shares at A$0.004 each.

The company noted that it has received firm commitments for the capital raising, which also includes a one-for-one free attaching option exercisable at A$0.022 until 7 November 2025.

These funds raised will be allocated to the settlement of the Perseverance acquisition, initial exploration at the Mt Isa and Perseverance Projects, and to meet general working capital needs.

The Perseverance Package, located in north-eastern Minas Gerais, comprises seven projects spanning 52,000ha.

This area is part of the geological extensions of the Lithium Valley, known for its proximity to the mines and compliant resources of companies such as CBL, Sigma Lithium and Latin Resources.

Ironbark is preparing to start exploration work on these newly acquired projects, which show potential for the discovery of lithium-related minerals and other critical minerals such as niobium.

IBG managing director Michael Jardine said: “The ongoing pivot of Ironbark Zinc continues with the acquisition of the Perseverance Project following soon after we secured the Simon-Anderson Cu Projects in Mt Isa.

“Perseverance provides the company with enormous exposure to one of the hottest hard rock lithium neighbourhoods in the world at a very low cost and complements the other base metal projects in our portfolio.

“Brazil is a very well-established mining jurisdiction and, in my opinion, significantly improves our overall sovereign risk profile. Perseverance is very early stage but we look forward to exploring what is a vast and promising land holding in Brazil’s Lithium Valley.”