- Si6 Metals (SI6) to acquire 50 per cent of Brazilian company Foxfire Metals and its tenements across 10 licenses and forms a joint venture with Foxfire
- Five of the licenses are in the prestigious “Lithium Valley” nearby Rio Tinto and NASDAQ-listed players
- Foxfire will manage the JV that in aggregate handles nearly 18,000 hectares of acreage in Brazil
- A general meeting is required to obtain shareholder approval, with the transaction expected to be complete in two weeks
- Si6 Metals shares last traded at 0.7 cents
Si6 Metals (SI6) has entered into a joint venture (JV) with Brazil-based Foxfire Metals to acquire a 50 per cent stake across 10 rare earth element (REE) licences.
The acquisition and JV expands Si6 metals’ international footprint and increases the company’s lithium acreage in Brazil.
Si6 now has copper, nickel and cobalt plays in Botswana; and now, REE and lithium plays in Brazil. It continues to eye platinum group element and gold projects in the country, as well as further base metals resources.
The company has acquired 17,800 hectares in the largest South American economy, with five tenements located within the world-renowned “Lithium Valley” and two in Caldera.
Another tenement can be found in the state of Ceará and a final tenement in the state of Amazon, which the company noted is “vastly underexplored” and positive for at least one hit of REE.
At Lithium Valley, Si6 will set up shop nearby some of the largest South American tier-one lithium producers, and discoveries including Rio Tinto’s (RIO) Eastern Brazilian Pegmatite Province; NASDAQ-listed Atlas Lithium and ASX-listed Latin Resources (LRS).
At Caldera, Si6 will be nearby Meteoric Resource’s (MEI) major South American REE project.
“We are excited that following the successful completion of our due diligence, Si6 has decided to go forward and participate in one of the most prospective exploration areas in the world,” Si6 Metals Executive Director Jim Malone said.
“We believe we are focused on the right commodities in the right places in the green tech and EV industry … our geographical diversity has landed us in some of the most in-demand jurisdictions in the world.”
Si6 Metals continues to proceed with negotiating the terms of its agreement, which includes Foxfire managing the JV, and expenditure commitments of $1 million for the first year, with the following years yet to be decided on a recurrent basis.
A general meeting will be called to obtain shareholder approval, with the transaction expected to be completed in two weeks. Meanwhile, the company is also developing acreage in WA.
Si6 Metals shares last traded at 0.7 cents.