Rio Tinto ready to build Simandou after almost 30 years of setbacks
Simandou has faced delays due to legal disputes, political changes, and the challenges of building a 600 km rail and port infrastructure.
Brazilian Rare Earths, which is backed by mining magnate and Australia’s richest woman Gina Rinehart, will list on the ASX with a market capitalization of $315 million ($220 million).
The company will hit the bourse on December 18. The listing is by way of 34 million new shares at $1.47 ($0.93).
Canaccord Genuity and Petra Capital are working to raise $32 million. Rinehart’s Hancock Prospecting took part in the company’s pre-IPO raise.
The company has 1,410 square kilometers of tenements in Brazil with a maiden JORC resource of 510 million tonnes at 1,526 parts per million total rare earth oxides.
The project in Bahia, northeastern Brazil, is one of the few potential producers with offtake not already committed to China.
The project is accessible by sealed roads, has access to clean hydro power via existing high-voltage power lines, and is located less than 200 km from a major deep-water port.
Related: Rinehart buys 18% stake in Azure Minerals to block SQM takeover
