Summit Minerals Limited ("Summit") is pleased to announce the execution of a binding letter of intent for the acquisition of the Mundo Novo Niobium-REE-Phosphate Carbonatite Project, located in central Brazil.
Highlights:
- Summit has executed an agreement to acquire the Mundo Novo IAC-Nb Alkaline Carbonatite project in Brazil, pending technical and legal due diligence.
- The project is enriched with niobium, rare earth elements (REE), and phosphate, with significant drilling results including:
- MN-RC-0009: 51 m at 10,000 ppm TREO from surface, including 14 m at 15,800 ppm TREO from surface & 6 m at 23,800 ppm TREO from 28 m
- MN-TH-0009: 15 m at 12,200 ppm TREO from surface, including 5 m at 23,700 ppm TREO from 8 m.
- MN-TH-0025: 20 m at 12,100 ppm TREO from surface.
- MN-RC-0010: 40 m at 7,383 ppm TREO from the surface, including 30 m at 8,681 PPM TREO from the surface and 10 m at 12,500 ppm TREO from 21 m.
- 541 individual intersections grading above 5,000 ppm TREO.
- MN-AC-0004: 9 m at 1.23% Nb2O5 from 2 m, including 4 m at 1.62% Nb2O5 from 3 m.
- The Mundo Novo project is drill-ready with all required permits in place.
- Located within Brazil's Goiás Alkaline Province, a region renowned for niobium production, including the world’s second-largest niobium mine.
This acquisition represents a strategic move into the niobium and rare earth element (REE) sector, which is aligned with the Company’s focus on critical metals for clean energy and electric vehicle markets.
The Mundo Novo project spans a 17.2 km2 area and features significant multi-commodity potential, including confirmed niobium and REE mineralization at shallow depths.
Commenting on the development, Managing Director, Gower He, stated: “The project is located adjacent to Highway 156 in Goiás State, providing excellent logistical access. Drilling data highlights significant potential for further resource delineation, with multiple high-grade intersections and areas open for expansion.
Summit plans to prioritize niobium exploration and conduct further drilling to expand the resource base and confirm its economic potential.
The acquisition terms include staged payments of cash and shares, contingent on due diligence and regulatory approvals. Summit will also grant a 2% net smelter return royalty to the vendors.”
Next Steps:
The Company will undertake an extensive due diligence process over the next 60 days.